Dems demand answers from federal housing agency on fraud investigations into government officials

WASHINGTON (CN) — House Democrats are taking aim at the head of the government’s federal housing authority, accusing him of targeting political opponents of President Donald Trump in what they have called a “brazen abuse” of his authority.

Lawmakers are demanding that Bill Pulte, director of the Federal Housing Finance Agency, turn over information related to his recent string of mortgage fraud accusations against several high-ranking officials and members of Congress, including one claim that resulted in a Justice Department probe.

In a letter to the federal housing agency director obtained by Courthouse News, Maryland Representative Jamie Raskin, argues that Pulte has undertaken these investigations in an effort to “punish and smear” critics and political opponents of the president.

“Your decision to use the FHFA to selectively — and publicly — investigate and target the president’s designated political enemies gives rise to the unmistakable impression that you have been improperly coordinating with the White House to launch these probes,” wrote Raskin, the top Democrat on the House Judiciary Committee.

Pulte, a former social media philanthropist confirmed in March to head up the government’s federal housing finance bureau, has made mortgage fraud accusations against three officials, including California Senator Adam Schiff, New York Attorney General Letitia James and Federal Reserve Governor Lisa Cook. He was active on social media throughout, posting information about his investigations to his X account.

In all three claims, Pulte contended that the officials in question had falsified mortgage documents to secure favorable loan terms.

The Trump official’s accusations against Cook were used by the president to justify firing her from the Federal Reserve late last month and have resulted in a formal Justice Department probe. Cook has denied Pulte’s claims and is suing the administration to block her ouster.

Raskin questioned Pulte’s motives and slammed the federal housing director for publicizing details on what the Maryland Democrat called “vindictive” investigations. He pointed out that the federal housing director posted about his accusations against Cook dozens of times and urged her to resign. Raskin posited that Pulte’s conduct was designed to provide “both cover and pretext” for Trump’s attempted firing of the Fed governor.

Further, the lawmaker argued, the FHFA is not a law enforcement agency and its director does not have investigatory power.

“[T]here exists no legitimate reason for you to review an individual’s mortgage documents,” he said.

Raskin also raised concerns about media reports that the FHFA is partnering with tech firm Palantir, owned by Trump ally Peter Thiel, to conduct “deep-sea fishing expeditions” of Americans’ mortgage data, powered by artificial intelligence.

The Maryland Democrat needled Pulte for what he said was a lack of transparency in the federal housing director’s decision to issue criminal referrals for the officials in question. The Democrat demanded that Pulte turn over all records related to mortgage investigations and document requests he or other FHFA officials initiated. He also asked the federal housing head to hand over documents dating back to 2018 related to agency procedures for investigating mortgage fraud or other wrongdoing.

“The American people have a right to understand why FHFA is reviewing decades-old mortgages, which individuals you have requested files for, and whether normal processes have been followed,” said Raskin. “Above all, the American people have a right to understand why, in the midst of a housing affordability crisis, the FHFA director is primarily concerned with investigating the president’s enemies rather than with reducing housing costs for millions of anxious Americans.”

So far, the officials who found themselves on the business end of Pulte’s FHFA are people that previously clashed with Trump in one way or another.

Schiff was a leading voice in the congressional probe into accusations of Russian collusion with Trump’s 2016 campaign. James, as New York’s top attorney, prosecuted the president for fraud. Both have denied the accusations of fraud.

Trump’s attempted firing of Cook, also predicated on claims of mortgage fraud, came amid his threats against the historical independence of the Federal Reserve over the central bank’s reticence to cut interest rates. The president has claimed he has the right to remove members of the Fed’s leadership “for cause.”

Cook, however, has refused to step aside, arguing in court that the president had no cause to remove her from her role. Her attorneys said that Trump’s attempted firing was little more than an effort to end-run around the proper process.

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