This week, Congressional Democratic leaders released the following joint statement on Federal Housing Finance Agency (FHFA) Director Bill Pulte’s move to shut down the FHFA Inspector General through severe, unnecessary budget cuts. The statement is signed by: Senate Democratic Leader Chuck Schumer (D-NY), House Democratic Leader Hakeem Jeffries (D-NY), and the following Committee Ranking Members: Rep. Maxine Waters (D-CA), House Financial Services Committee; Sen. Elizabeth Warren (D-Mass.), Senate Banking, Housing, and Urban Affairs Committee; Sen. Richard Durbin (D-IL), Senate Judiciary Committee; Sen. Gary Peters (D-Mich.), Senate Homeland Security and Governmental Affairs Committee (HSGAC); Sen Richard Blumenthal (D-CT), Senate Permanent Subcommittee on Investigations, HSGAC; Rep. Jamie Raskin (D-Mary.), House Judiciary Committee; and Rep. Robert Garcia (D-CA), House Committee on Oversight and Government Reform.

“Bill Pulte is shutting down the independent watchdog that is responsible for investigating his misconduct — like his efforts to weaponize private mortgage data in sham investigations against the President’s perceived political enemies. Apparently, it wasn’t enough for President Trump to remove the acting inspector general last November — now Pulte wants to dismantle the office entirely. Pulte’s corrupt crusade to protect himself and President Trump from accountability will likely result in the firing of approximately 40 law enforcement personnel who protect families from mortgage fraud. Bill Pulte should resign, and if he does not, Congress must hold him accountable.”

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Background

This week, FHFA put out a press release claiming it was “right-sizing” its Inspector General Budget. But the OIG communicated to bipartisan Senate and House committee staff that Pulte’s budget cuts would require the OIG to wind down its operations and cut nearly its entire staff.

In addition to its role in providing oversight on FHFA mismanagement, the FHFA OIG fulfills a unique and critical oversight function of the integrity of the US mortgage market alongside partners at HUD and DOJ, including by stamping out real threats of mortgage fraud. 

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