INTERVIEW: FHFA Director Bill Pulte on why Trump can fire Powell, plans for Fannie and Freddie, his investigation into Tish James, and more

President Donald Trump spent part of his weekend lavishing praise on Bill Pulte, the Director of the Federal Housing Finance Agency (FHFA), who is tasked with overseeing government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac — despite Pulte helming a typically low-profile independent agency, he’s landed major headlines about his work on expanding home ownership, defending Trump’s ability to fire Jerome Powell for cause, and in investigating New York’s attorney general.

Pulte spoke with the Washington Reporter about his priorities in office; at the top of his list is “lower[ing] costs” for Americans. “Title insurance, mortgage insurance, any of the closing costs, those are always ways that we want to reduce costs,” he said. “We want to suck costs out of the system.”

The FHFA, he said, is “always looking at innovating title [insurance reform], but we'll see what happens through the remainder of the year, and in the next year.”

Prior to his arrival at FHFA under Trump, Pulte explained that the entire agency was run remotely during the Biden administration.

“Biden had kept everybody there post-COVID as a remote employee,” he said. “He didn't really care. I don't even think Biden knew he himself existed, but he certainly didn't know that Fannie and Freddie existed, I can tell you that. None of these other presidents did until President Trump showed up on the scene.”

“How can you run the United States mortgage business with 18,000 people working remotely?” he asked.

“We ordered everybody back to work, and people had to get to work, and we started working to get stuff done,” he said. “For example, we were the ones who implemented the other credit score, which allows for the rent to be captured.” That policy, many contend, will help drastically expand home ownership to Americans.

While Pulte said that Trump has the ultimate right to fire Jerome Powell, he believes that the president has “cause” to do so.

“I believe that Jerome Powell violated the National Capital Planning Act, which requires them to use certain rules and procedures in order to effectuate change,” he said.

One investigation that Pulte has a lot of say over is the one into Tish James, New York’s attorney general. Pulte referred James for criminal prosecution over allegations that she “has, in multiple instances, falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms.”

Pulte told the Reporter of his decision that “it doesn't matter whether you're a celebrity, whether you're a lawyer, or in her case, whether you're a politician; if you commit mortgage fraud in this country, we are going to come after you.”

“As the regulator of Fannie Mae and Freddie Mac, it's very important to me that the safety and soundness in the market that we have mortgage companies that are not riddled with fraud, and you have mortgages that you need to have low cost on, well, there's a lot of fraud in the system,” he explained. “You have high cost because you price in the default risk for the fraud. So we can't have that happen, and we won't let it happen, and it doesn't matter who it is, but we're here to do it. We're going to get it done, and we're going to clean up the mortgage market.”

Under Pulte’s leadership, he said, “we're going to make [the market] safer, stronger, and better than ever before.”

Below is a transcript of our interview with FHFA Director Bill Pulte, lightly edited for clarity.

Washington Reporter:

Director Pulte, thanks so much for chatting. Is the FHFA considering any title insurance reform?

Bill Pulte:

We're always looking at innovating title but we'll see what happens through the remainder of the year, and in the next year. We just approved a new pilot with a company called Westcor. We added them to Fannie Mae, and we're excited about that, but for right now, we're mostly focused on making sure that people can qualify for mortgages with government utilities.

Washington Reporter:

If you do look at further title insurance reform, what would that mean for home buyers?

Bill Pulte:

Any time you can take costs out of the system, it's better, right? What we're trying to do is always lower costs. Title insurance, mortgage insurance, any of the closing costs, those are always ways that we want to reduce costs. We want to suck costs out of the system.

Washington Reporter:

Can you talk about how homeowners and buyers would benefit from structural changes in GSEs?

Bill Pulte:

When businesses are better run and are being run leaner and meaner, that makes for a more cost effective housing economy. When we showed up, we had 18,000 employees, and all of them were working remotely. How can you run the United States mortgage business with 18,000 people working remotely? So we ordered everybody back to work, and people had to get to work, and we started working to get stuff done. For example, we were the ones who implemented the other credit score, which allows for the rent to be captured.

Washington Reporter:

Had Kamala Harris won, do you think that return to office would have happened?

Bill Pulte:

Biden had kept everybody there post-COVID as a remote employee. He didn't really care. I don't even think Biden knew he himself existed, but he certainly didn't know that Fannie and Freddie existed, I can tell you that. None of these other presidents did until President Trump showed up on the scene.

Washington Reporter:

In the past, President Trump has floated taking Fannie Mae and Freddie Mac public, in which case you would be playing quite a role in that. Is there any movement on that? What do you think should go on with potentially making this public?

Bill Pulte:

It'll be up to the president, but the president has a lot of different options, and my main thing right now is focusing on running things like good, well-run businesses, and that's what I'm going to continue to do. But ultimately, it will be up to the president to decide what or if he wants to take any or part of the companies public.

Washington Reporter:

You’ve been talked a lot about Fed policy. Do you think that Trump should fire or replace Jerome Powell?

Bill Pulte:

I think he has a legal right to do it, but it will ultimately be up to the president whether he wants to do that or not.

Washington Reporter:

Can you explain why you think he has the legal right to do that?

Bill Pulte:

I think he has the legal right no matter what. But I also think that there's for cause justification. I believe that Jerome Powell violated the National Capital Planning Act, which requires them to use certain rules and procedures in order to effectuate change.

Washington Reporter:

You burst onto the scene in your new job with the criminal referral into Attorney General Tish James. Can you talk about why that is within your jurisdiction, and what's the huge problem there?

Bill Pulte:

Mortgage fraud is a huge problem in this country, and it doesn't matter whether you're a celebrity, whether you're a lawyer, or in her case, whether you're a politician; if you commit mortgage fraud in this country, we are going to come after you. And as the regulator of Fannie Mae and Freddie Mac, it's very important to me that the safety and soundness in the market that we have mortgage companies that are not riddled with fraud, and you have mortgages that you need to have low cost on, well, there's a lot of fraud in the system. You have high cost because you price in the default risk for the fraud. So we can't have that happen, and we won't let it happen, and it doesn't matter who it is, but we're here to do it. We're going to get it done, and we're going to clean up the mortgage market. We're going to make it safer, stronger, and better than ever before.

Washington Reporter:

Looking to the second half of this year, what other priorities do you have with FHFA?

Bill Pulte:

U.S. federal housing is going to be focused on making sure that the businesses are run lean and mean and operationally sound. We have to have, like I said, a mortgage system that does not have fraud and does not have all kinds of other stuff.

Washington Reporter:

This was a fascinating conversation, thanks so much for talking today.