Cortez Masto, Reed, Banking Democrats Request Full Banking Hearing with FHFA Director Bill Pulte

Banking Democrats call for public forum to question Pulte on documented abuses of power

Washington, D.C. - U.S. Senators Catherine Cortez Masto (D-Nev.) and Jack Reed (D-R.I.) led their Democratic colleagues on the Banking, Housing, and Urban Affairs Committee in a letter to Chair Tim Scott (R-S.C.) requesting a hearing with Federal Housing Finance Agency (FHFA) Director Bill Pulte. The Senators' request follows various reported abuses of power by Pulte, including last week's unprecedented move to cut the funding to the agency's Office of the Inspector General (FHFA-OIG) by 60 percent and risk future operations.

"We request you invite Director Pulte to testify before the Senate Banking Committee so our committee can fulfill its oversight functions and explore how his decisions are affecting FHFA's ability to ensure Fannie Mae, Freddie Mac and the FHLBanks (collectively, "the government-sponsored enterprises," or GSEs) operate in a safe and sound manner and provide a reliable source of liquidity and funding for housing finance and community investment. The hearing would provide Director Pulte the opportunity to explain his record," wrote the Senators.

Bill Pulte's proposed cuts to FHFA-OIG - which is tasked with investigating waste, fraud, and abuse at FHFA, Fannie Mae, Freddie Mac and the Federal Home Loan Banks - come while he remains under increased scrutiny for his abuses of power. Pulte is under investigation by the Government Accountability Office (GAO) for potentially misusing his federal authority and resources to publicly accuse prominent Democrats and President Donald Trump's perceived political enemies of mortgage fraud. Pulte also faces questions for his apparent involvement in the President's scheme to demolish the Kennedy Center and his brief tenure as Acting Director of National Intelligence.

The Senators also call into question his mismanagement of Fannie Mae and Freddie Mac, which back 70 percent of mortgages in the United States: "Since failing to respond to congressional inquiries on his activities, Director Pulte has fired more staff at Fannie Mae, including about a dozen high-ranking executives. These now-fired executives were responsible for multifamily loans, low-income housing tax credit investments, and finance, and also included regulatory and communications officials. Director Pulte has not publicly explained the reasoning behind these most recent terminations and how these firings will impact Fannie Mae's ability to provide price stability across the mortgage market."

Pulte's cuts to the FHFA-OIG would result in a layoff of 70-80% of staff, including experienced law enforcement officers who serve as the primary watchdogs for Fannie Mae and Freddie Mac and keep the mortgage market stable. These staff are tasked with investigating title and mortgage fraud, protecting mortgage lenders and home buyers from predatory practices, and ensuring a sound and secure mortgage and banking system.

"We must fulfill our oversight responsibilities related to potential harm being done by Director Pulte to our nation's housing finance market and in turn, to the supply and cost of housing," conclude the Senators.

Read the full letter here. Additional signatories include Senators Elizabeth Warren (D-Mass.), Mark Warner (D-Va.), Chris Van Hollen (D-Md.), Tina Smith (D-Minn.), Raphael Warnock (D-Ga.), Andy Kim (D-N.J.), Ruben Gallego (D-Ariz.), Lisa Blunt Rochester (D-Del.), and Angela Alsobrooks (D-Md.).

Senator Cortez Masto has pushed for oversight of multiple Departments under the Trump Administration - including at the Department of the Interior, the U.S. Forest Service, the National Nuclear Security Administration, the Department of Veterans Affairs, Department of Agriculture, and General Services Administration. The Senator has been a vocal opponent of Pulte, advocating for oversight of his abuses of power as head of the FHFA and pushing back against his appointment as Acting Director of National Intelligence. Last week, the Senator introduced legislation to protect funding for the FHFA-OIG.

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