President Donald Trump's "unpredictable" attack dog and housing finance director, Bill Pulte, fired people at Fannie Mae who were investigating one of his close allies over several complaints.
Pulte announced via X that he had fired Fannie Mae employees over what he described as stopping DEI initiatives. However, six people with information about the ethics team investigating the Pulte supporter said that wasn't the case and "those firings effectively cleared out the company’s internal watchdogs, charged with ensuring Fannie and its officials follow the law," according to The Washington Post.
“DEI HAS PASSED AWAY AT FANNIE MAE,” Pulte wrote on X on Oct. 30.
Pulte oversees the U.S. mortgage market and also runs Fannie Mae and brother firm Freddie Mac. He has taken over both the company boards and made himself the chairman of both organizations. The Federal Housing Finance Agency watchdog role was removed earlier this month, Reuters reported.
The ethics team was fired after Fannie management told it to stop examining information about a Pulte ally on Oct. 23.
Other top leaders at the government-backed company were also reportedly removed after clashing with Pulte.
"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," The Post reports.
Pulte's moves have apparently "sowed uncertainty and undermined confidence in him from those across the housing finance industry at a crucial moment."
The Trump administration is aiming to take the mortgage companies public since the firms were taken under government control during the 2008 housing crisis. It would be considered 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," The Post reports.