The Office of Inspector General at the Federal Housing Finance Agency has accused the regulator, under Director Bill Pulte, of taking “unprecedented” steps that hindered the watchdog’s oversight work. Bloomberg reported that the allegations appeared in the inspector general’s semiannual report to Congress, marking a further escalation in the conflict between agency leadership and its congressionally mandated internal watchdog. The report concerns the FHFA’s oversight of Fannie Mae, Freddie Mac and other housing lenders.
The inspector general’s report says the FHFA refused to provide requested records and information during at least three separate evaluations. One review involved the agency’s oversight of a multifamily lender that defaulted in June 2024. The watchdog said that although it later received enough information to move some evaluations forward, the earlier restrictions had caused significant delays and could affect the office’s ability to complete reports for publication. The allegations are based on the inspector general’s account of its dealings with the agency.
The FHFA rejected the characterization that it obstructed the inspector general. A spokesperson told Reuters that the agency had readily produced information and cooperated with the watchdog. The spokesperson said staff had completed 56 document requests and attended 16 separate meetings, each lasting about an hour, in connection with three recent reviews. The disagreement centers on whether those steps satisfied the inspector general’s statutory right to obtain records and conduct independent oversight. The reported allegations have not been adjudicated by a court.
The dispute also concerns the inspector general’s funding. Bloomberg reported that Pulte had announced plans to cut the watchdog’s budget by more than 60%. Reuters reported that staff had been told the cuts could affect as much as 80% of the office’s workforce, or about 80 people. The inspector general warned that reduced funding would further impair its ability to carry out legally mandated oversight. The FHFA, in turn, has argued that the watchdog’s budget must remain subject to financial accountability and responsible management.
An inspector general is tasked with independently reviewing federal programs and identifying waste, fraud and mismanagement. Reuters reported that this was the first time in at least a decade that the FHFA watchdog had flagged interference with its independence in a semiannual report. The dispute comes amid broader scrutiny of Pulte, including his roles at the FHFA and on the boards of Fannie Mae and Freddie Mac, as well as a separate Government Accountability Office inquiry into his handling of mortgage-fraud referrals. Those matters remain under review; they should not be presented as findings that Pulte has committed wrongdoing.