FHFA Director Bill Pulte has made mortgage fraud enforcement a central focus of his tenure. He has established a public hotline for fraud tips and has issued referrals to the Department of Justice (DOJ) that involve several public figures — including New York Attorney General Letitia James and Federal Reserve Governor Lisa Cook.
In recent months, Democratic members of Congress have sent letters to Allen expressing concern over what they described as the “unprecedented politicization of the agency’s investigative functions.” They wrote that “the circumstances, timing, and selection of these investigations raise serious questions about their independence and legitimacy.”
Lawmakers also warned that Pulte’s direct referrals to the DOJ run “contrary to the agency’s standard investigations and referral procedures and statutorily granted authorities,” since such actions are typically initiated by the inspector general’s office.
Earlier this year, the Trump administration fired more than a dozen inspector generals, including Rae Oliver Davis at the U.S. Department of Housing and Urban Development (HUD). These moves often spark controversy, with concerns of damage to the independence of these agencies.
