From Mother Jones · Dan Friedman · · 1m 10s
Pulte Fires Fraud Investigators After Crackdown Claims
FHFA director Bill Pulte cuts fraud investigators despite claiming to crack down on mortgage fraud.
In brief
FHFA director Bill Pulte cuts fraud investigators despite claiming to crack down on mortgage fraud. FHFA director Bill Pulte fired mortgage fraud investigators after claiming to crack down on fraud, undermining his own campaign. Originally reported by Mother Jones.
Bill Pulte's Fraud Crackdown Claim
Federal Housing Finance Agency Director Bill Pulte claimed last year the agency launched a wide crackdown on mortgage fraud.
“Bill Pulte, the head of the Federal Housing Finance Agency, said last year that the agency, which oversees federal mortgage regulators Fannie Mae and Freddie Mac, had launched a "wide crackdown on mortgage fraud."”
Pulte Targeted Democrats for Fraud
Pulte urged prosecutors to target Democratic officials including Fed Chair Lisa Cook and New York Attorney General Letitia James over alleged mortgage fraud inaccuracies.
“Pulte announced his campaign after drawing criticism for urging the justice department to prosecute officials including federal reserve board of governors member lisa cook, new york attorney letitia james and sen. adam schiff (d-calif.), over alleged inaccuracies in past mortgage applications.”
Pulte Cuts Inspector General Office
Pulte announced deep cuts to the FHFA Inspector General office, which investigates his alleged misconduct and mortgage fraud.
“On wednesday, he announced deep cuts to the office of the inspector general at the fhfa.”
Investigators Secured Major Convictions
The Inspector General office secured over 1,200 criminal convictions and nearly $75 billion in recoveries since its creation.
“Hodge told congressional oversight committee members in a letter wednesday that the office had secured more than 1,200 criminal convictions and recover nearly $75 billion since.”
Pulte Justifies Budget Cuts
Pulte argued the IG office is relatively more expensive than comparable federal inspector general offices as a percentage of agency spending.
“In a press release thursday, pulte explained slashing the ig’s budget by arguing that it was relatively more expensive than comparable inspector general offices at other federal agencies as a percentage of overall agency spending.”
Democrats Demand Pulte Resign
Senate Banking Committee Democrats demanded Pulte reverse the cuts, stating they would make it impossible for the IG office to oversee mortgage fraud.
“Democrats on the senate banking committee demanded on thursday that pulte reverse the move, writing that the cuts would "make it impossible" for the inspector general’s office to oversee the agency and the us mortgage market.”
What it means
FHFA director Bill Pulte fired mortgage fraud investigators after claiming to crack down on fraud, undermining his own campaign.
