Fannie Mae officials who were recently removed from their positions were investigating whether Federal Housing Finance Agency (FHFA) Director Bill Pulte improperly obtained mortgage records of Democratic officials, including New York Attorney General Letitia James, The Wall Street Journal reported on Tuesday.
Fannie Mae’s ethics and investigations team had received internal complaints that senior officials directed staff to access the mortgage documents of James and others. Investigators looked into who authorized the requests, whether Pulte had the authority, and whether proper procedures were followed, sources told WSJ.
The probe was referred to the FHFA’s Office of Inspector General (OIG), and the report was later sent to the U.S. attorney’s office in eastern Virginia — the same office that filed a criminal case alleging mortgage fraud against James, who has denied wrongdoing and pleaded not guilty.
Following the investigations, about a dozen members of Fannie Mae’s ethics and internal investigations unit were fired, WSJ reported. Suzanne Libby, Fannie Mae’s chief ethics officer, was removed, and Danielle McCoy, who served as general counsel, resigned under pressure.
The FHFA’s acting inspector general, Joe Allen, who forwarded the report to prosecutors, was also asked to step down last week.
Neither the FHFA nor Fannie Mae immediately responded to HousingWire‘s request for comment.
Pulte has cited diversity, equity and inclusion (DEI) initiatives as a reason for layoffs at the government-sponsored enterprises. And he has issued referrals to the Department of Justice (DOJ) regarding allegations of mortgage fraud, including against California Sen. Adam Schiff and Federal Reserve Governor Lisa Cook. Neither has been charged.
Pulte has denied “political weaponization” when asked about the sources of mortgage fraud tips and the allegations. He has also declined to say whether he is scrutinizing Texas Attorney General Ken Paxton — a Republican who has reportedly listed three properties as his primary residence, according to The Associated Press.
“It doesn’t matter if you’re a Republican or a Democrat or a Fed Governor or someone who mans a convenience store,” Pulte has said in a September interview with CNBC. “If you commit mortgage fraud, you need to be held accountable.”
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