Banking and Finance Law Daily Wrap Up, OVERSIGHT AND INVESTIGATION—Senate Banking Democrats seek hearing with FHFA head Pulte, (Oct 6, 2026)

By Nora Macaluso

The senators said the agency director should answer for what they called “abuses of power.”

Democrats on the Senate Banking Committee asked panel Chairman Tim Scott (R-S.C.) to hold a hearing with Federal Housing Finance Agency (FHFA) Director Bill Pulte following what they called “various reported abuses of power” by the agency head.

“We request you invite Director Pulte to testify before the Senate Banking Committee so our committee can fulfill its oversight functions and explore how his decisions are affecting FHFA’s ability to ensure Fannie Mae, Freddie Mac and the FHLBanks (collectively, the government-sponsored enterprises (GSEs)) operate in a safe and sound manner and provide a reliable source of liquidity and funding for housing finance and community investment,” the senators, including Ruben Gallego (D-Ariz.), Catherine Cortez Masto (D-Nev.), and Jack Reed (D-R.I.), wrote in a letter to Scott.

“The hearing would provide Director Pulte the opportunity to explain his record,” the letter said.

The senators noted Pulte’s “unprecedented” 60 percent cut to the FHFA’s Office of the Inspector General (FHFA-OIG) (see Banking and Finance Law Daily, Oct. 2, 2026). They said the cuts would affect 70 percent to 80 percent of staff, including the “primary watchdogs for Fannie Mae and Freddie Mac,” which together back some 70 percent of all mortgages in the country.

The FHFA recently announced what it called a “peer-matched” budget allocation for the OIG, saying the change would make the watchdog’s budget “efficient and right-sized.” Democrats, however, said the cuts are so significant they would immediately force the OIG to begin winding down its operations (see Banking and Finance Law Daily, Oct. 1, 2026).

“Hearing testimony from Director Pulte is more important than ever in light of his recent decision to shutter the FHFA Office of Inspector General (OIG),” the senators wrote.

Pulte’s “ability to appropriately manage FHFA and adequately oversee the housing market is critical to addressing the housing crisis,” they wrote.

They noted that Pulte is under investigation by the Government Accountability Office (GAO) for “potentially misusing his federal authority and resources to publicly accuse prominent Democrats and President Donald Trump’s perceived political enemies of mortgage fraud” and that he “appears to be involved in President Trump’s plans to potentially demolish the Kennedy Center, even as mortgage rates and house prices continue to rise.”

The letter continued, “Since failing to respond to congressional inquiries on his activities, Director Pulte has fired more staff at Fannie Mae, including about a dozen high-ranking executives. Director Pulte has not publicly explained the reasoning behind these most recent terminations and how these firings will impact Fannie Mae’s ability to provide price stability across the mortgage market.”

The senators included a list of other topics they wanted to discuss with Pulte, including his decision to appoint himself chair of Fannie Mae and Freddie Mac, his involvement with the mortgage information of individual Americans “and related attacks against perceived political enemies,” and policy decisions such as terminating the GSEs’ participation in Special Purpose Credit Programs and rescinding climate-risk and multifamily tenant-protection directives.

Senators Elizabeth Warren (D-Mass.), Mark Warner (D-Va.), Chris Van Hollen (D-Md.), Tina Smith (D-Minn.), Raphael Warnock (D-Ga.), Andy Kim (D-N.J.), Lisa Blunt Rochester (D-Del.), and Angela Alsobrooks (D-Md.) also signed the letter.

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