FHFA Watchdog Report Finds Pulte's Agency Obstructed Its Own Oversight, Calls Interference 'Unprecedented'

A report from FHFA's own inspector general, reviewed by Reuters and sent to lawmakers Oct. 30, found the agency refused to provide records during at least three oversight evaluations, including one on a lender whose multifamily loans defaulted in 2024. The report calls the obstruction "unprecedented," saying it interfered with the OIG's independence over Fannie Mae and Freddie Mac. Weeks after an August understanding, the OIG was told its funding would be "drastically" cut — "an extreme escalation" of the agency's challenge to its authority.

It is the first time in at least a decade FHFA's inspector general has flagged the agency for interference, per Reuters. Director Bill Pulte made himself chairman of Fannie and Freddie's boards after confirmation and has since ousted the acting inspector general and driven out hundreds of staff.

An FHFA spokesperson called the allegations incorrect, saying the agency "readily produced" information, and defended the cuts as aligning the OIG's budget with other regulators. OIG leaders have appealed to lawmakers; staff have received furlough notices.