US housing regulator accused of blocking its own watchdog, report says
The watchdog inside America’s top housing regulator says the agency blocked its work. In a report sent to Congress on Friday, 30 October, the Federal Housing Finance Agency’s inspector general accused the agency of withholding records needed for at least three reviews of its supervision of Fannie Mae, Freddie Mac and other housing lenders.
The report, reviewed by Reuters, called the obstruction “unprecedented”. It said the watchdog was kept from records about a lender whose apartment-block loans defaulted in June 2024. Reuters found it was the first time in at least a decade that the watchdog had flagged interference with its independence.
The FHFA rejected the claims. A spokesperson said the agency had “readily produced” information and cooperated with its watchdog, citing 56 document requests completed and 16 hour-long meetings for three recent reviews. “FHFA is proud of its record of respecting the independence and role of the OIG,” the spokesperson said.
The row follows a wider fight over funding. The FHFA pulled most of the watchdog’s budget about a month ago, and staff have been told as many as 80% of its people — around 80 jobs — could be cut. Acting inspector general James Hodge warned lawmakers the cuts would stop the office doing its job. Bill Pulte, appointed by President Donald Trump and confirmed as director in March 2025, has also made himself chairman of both the Fannie Mae and Freddie Mac boards.
Why it matters
The FHFA supervises the two mortgage giants that back most home loans in the United States, along with the Federal Home Loan Banks. If its own watchdog cannot see the records it asks for, Congress and the public get a weaker check on that supervision — and on risks in apartment-block lending. The claims are allegations in a watchdog report, not a court finding, and the agency disputes them.
What happens next
Lawmakers now have the report, and the inspector general’s leaders have been talking to them about ways to stop the job cuts. The next steps to watch are whether the full report is made public, whether Congress acts, and whether the disputed records are handed over. The watchdog’s staff have already received furlough notices and been told to prepare for cuts.
This article is for general information and education only. It is not legal or financial advice.
Sources
- https://wncy.com/2026/10/30/exclusive-trump-appointee-bill-pultes-housing-agency-obstructed-watchdog-report-says/ (Reuters, 30 October 2026)
- https://wrenews.com/fhfa-inspector-general-records-oversight-dispute-october-2026/ (WRE News, 31 October 2026)
