Government Accountability Office Probes Bill Pulte’s Alleged Mortgage Fraud Involvement

The Government Accountability Office (GAO) is investigating Bill Pulte, the Director of the Federal Housing Finance Agency (FHFA). This inquiry follows a request from Senate Democrats concerning Pulte’s potential misuse of authority.

Background of the Investigation

On Thursday, the GAO announced its decision to investigate allegations against Pulte. He has been linked to several criminal referrals related to alleged mortgage fraud targeting individuals critical of former President Donald Trump. This stems from his actions since joining the Trump administration earlier this year.

Details of the Allegations

After Pulte took office, he notably expanded the FHFA’s roles, traditionally focused on managing housing finance stability and overseeing Fannie Mae and Freddie Mac. Notably, he appointed himself chairman of both Fannie and Freddie’s boards in March 2023.

• Pulte has advocated for lower interest rates at the Federal Reserve.
• He has initiated Justice Department inquiries into figures perceived as Trump adversaries.
• Targets of investigations include California Democratic Representatives Eric Swalwell and Adam Schiff, along with New York Attorney General Letitia James.

GAO’s Investigation Process

A spokesperson for the GAO indicated that the investigation’s scope and methodology are being determined. This initial phase may take several months, delaying any completion estimates.

The Senate Democrats contested Pulte’s referral actions, arguing that his claims should be scrutinized. They requested the GAO examine any revisions Pulte made to FHFA’s standard mortgage-fraud procedures since his appointment.

Reactions to the Investigation

White House Communications Director Steven Cheung defended Pulte, describing him as one of Trump’s “most loyal and important advisors.” Cheung criticized the media for alleged attempts to create division within the Trump administration, asserting Pulte’s commitment to the “America First” agenda.

As this investigation unfolds, it highlights ongoing tensions between political divisions and the influence of federal positions. The findings may have significant implications for Pulte, the FHFA, and the broader political landscape surrounding Trump’s administration.