{"id":7083,"date":"2025-12-22T06:58:13","date_gmt":"2025-12-22T11:58:13","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=7083"},"modified":"2025-12-22T06:58:15","modified_gmt":"2025-12-22T11:58:15","slug":"fannie-mae-and-freddie-mac-boss-faces-investigation-after-accusing-others-of-loan-fraud","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/fannie-mae-and-freddie-mac-boss-faces-investigation-after-accusing-others-of-loan-fraud\/","title":{"rendered":"Fannie Mae and Freddie Mac Boss Faces Investigation\u2014After Accusing Others of Loan Fraud"},"content":{"rendered":"\n
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Real estate developer William (Bill) Pulte directs the Federal Housing Finance Agency (FHFA). Pulte is also the self-assigned chair of the boards of both Fannie Mae and Freddie Mac<\/a>.<\/p>\n\n\n\n

Now, an investigation is underway as to whether Pulte (together with select employees) has misused federal authority and resources.<\/p>\n\n\n\n\n\n\n\n

Why Is the Federal Housing Finance Agency Being Called Into Question?<\/h2>\n\n\n\n

Pulte has accused a string of prominent Democrats of committing mortgage fraud. And Pulte has gone further, turning these claims over to the Justice Department for criminal investigations. In at least one case, Pulte has claimed to have received a \u201ctip\u201d that the target had committed fraud.<\/p>\n\n\n\n

What actually happened? Senior Fannie Mae officials reportedly asked workers to pull out mortgage documents filed by specific people. In the turmoil that followed, dozens of Fannie Mae ethics staffers were pressed out of their jobs. People forced out included Chief Ethics Officer Suzanne Libby, along with other high-level employees.<\/p>\n\n\n\n

Because Pulte\u2019s accusations have focused fully on well-known Democrats (many of whom have clashed with the Trump administration), a group of senators have called foul.<\/p>\n\n\n\n

The referrals by Pulte to the Justice Department involve claims of serious crimes. Federal and state laws punish mortgage fraud by long prison terms and hefty fines. People who have been accused include New York Attorney General Letitia James and Federal Reserve Governor Lisa Cook, among others.<\/p>\n\n\n\n

So far, though, the accusations have not led to any convictions.<\/p>\n\n\n\n

Charges against A.G. James after Pulte\u2019s criminal referral have been dismissed. Since then, two grand juries refused to indict James. The Supreme Court will soon hear Lisa Cook\u2019s case<\/a>.<\/p>\n\n\n\n

Who Is Investigating the Federal Housing Finance Agency?<\/h2>\n\n\n\n
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The U.S. Government Accountability Office (GAO) has accepted the request (see the official acceptance here<\/a>) and opened the investigation. The GAO is the independent and nonpartisan \u201cwatchdog\u201d that holds agencies to account on behalf of Congress.<\/p>\n\n\n\n

GAO publishes reports that examine  abuses of authority, for the purpose of improving government practices.<\/p>\n\n\n\n

The congressional watchdog intends to determine whether there\u2019s been any misuse of federal authority and resources at the FHFA, which oversees loan backers Fannie and Freddie.<\/p>\n\n\n\n

The Government Accountability Office will want to know:<\/p>\n\n\n\n