Congressional Democratic leaders are accusing Federal Housing Finance Agency Director Bill Pulte of undermining the agency's inspector general through budget cuts. In a joint statement, they said the cuts could force roughly 40 law enforcement personnel out of an office that investigates mortgage fraud and oversees the housing regulator.
The statement is a political response to a federal agency budget decision, not a finding that Pulte committed misconduct or that all projected job losses have occurred. It did not provide the amount of the cuts, a staffing notice or a timetable for any layoffs.
Senate Democratic Leader Chuck Schumer of New York and House Democratic Leader Hakeem Jeffries were among the signers, along with ranking members of congressional committees with housing, banking, judiciary and oversight responsibilities. They called for Pulte's resignation or congressional action.
The lawmakers said the inspector general examines the FHFA and protects families against mortgage fraud. They also alleged Pulte has used private mortgage data in investigations of political opponents. Those assertions are the lawmakers' claims and are not established by their statement alone.
The FHFA Office of Inspector General is the independent oversight office for the federal housing regulator. Its work includes audits and investigations connected to FHFA, Fannie Mae, Freddie Mac and the Federal Home Loan Bank system. Changes to that office could affect federal mortgage oversight nationally, including in New York, but the statement did not identify a specific local case or service interruption.
The agency's response to the lawmakers' allegations was not included in the release. The exact effect of the budget decision on staffing and ongoing investigations remains to be established through agency records and subsequent action.
Read the lawmakers' statement.
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