Zincwarrior
Diamond Member
Housing Finance Director fired internal watchdogs who were looking into a friend close to him. I am sure its fine.
Housing official Bill Pulte fired ethics workers who were looking into his ally
The actions have also sowed uncertainty and undermined confidence in Pulte across the mortgage industry.President Donald Trump’s firebrand housing finance director, Bill Pulte, fired internal watchdogs at Fannie Mae who were looking into multiple complaints against a high-ranking company officer close to him, according to people familiar with the matter.
Pulte said last month he had fired dozens of Fannie Mae employees in what he said included a bid to end diversity, equity and inclusion initiatives at the mortgage giant. Yet six people familiar with the matter said those firings effectively cleared out the company’s internal watchdogs, charged with ensuring Fannie and its officials follow the law. The ethics team — including its chief, Suzanne Libby — was fired shortly after Fannie management directed investigators to cease looking into the Pulte ally, said a couple of the people familiar with the situation.
Other top Fannie officials were also terminated amid broader clashes with Pulte, the people said, including general counsel Danielle McCoy and head of single-family business Malloy Evans. Some of the terminations were first reported by the Wall Street Journal.
Libby, McCoy and Malloy did not respond to requests for comment.
Now there are fewer independent voices at the government-backed company — one of two that underpin the gigantic U.S. mortgage market — to push back on Pulte’s unpredictable and aggressive leadership style, ethics experts and people familiar with the matter said.
Pulte’s roles are wide-ranging: He runs the Federal Housing Finance Agency, which oversees the U.S. mortgage market and controls Fannie and its peer, Freddie Mac. Pulte has overhauled the company boards and made himself chairman of both firms. Earlier this month, Reuters also reported that the internal FHFA watchdog was being removed.
Pulte’s actions and unpredictable policymaking style have also sowed uncertainty and undermined confidence in him from those across the housing finance industry at a crucial moment. The Trump administration is looking to take Fannie and Freddie public — since taking control of them during the 2008 housing crisis — through what it says would be the largest public offering in history. Pulling that off would require a full-throated endorsement from major banks, investors, lenders and the financial markets. But multiple industry figures and housing finance experts say Pulte’s time in office, and the recent firings of top Fannie officials, is eroding their faith in the firms’ futures.
