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Government Accountability Office launches probe into Bill Pulte over mortgage-fraud referrals

<i>Mark Schiefelbein/AP via CNN Newsource</i><br/>Director of the Federal Housing Finance Agency Bill Pulte walks outside the White House on September 2

By CNN Newsource

Published December 4, 2025 1:19 pm

By Samantha Delouya, CNN

(CNN) — A major congressional watchdog has opened an investigation into Federal Housing Finance Agency Director Bill Pulte, who has helped spark probes into several of President Donald Trump’s perceived political enemies, over possible misuse of authority.

On Thursday, the Government Accountability Office (GAO) said it would act on Senate Democrats’ request to investigate Pulte and the FHFA after Pulte referred several of Trump’s critics and perceived adversaries for criminal investigation over alleged mortgage fraud.

“The first thing GAO does as any work begins is to determine the full scope of what we will cover and the methodology to be used,” a GAO spokesperson said. “This can take a few months, and until that is done, we cannot provide any estimates on a completion date.”

Since joining the Trump administration earlier this year, Pulte has significantly expanded the role of the FHFA director, a position traditionally focused on ensuring the sound operation of the housing finance system and overseeing Fannie Mae and Freddie Mac.

In March, Pulte appointed himself chairman of the boards of both Fannie and Freddie and has become one of the loudest voices in the administration pushing for lower interest rates at the Federal Reserve, a traditionally independent and apolitical institution.

He has also been the driving force behind several Justice Department mortgage-fraud investigations launched this year against individuals viewed as opponents to Trump, including California Democrats Rep. Eric Swalwell and Senator Adam Schiff, New York Attorney General Letitia James and Federal Reserve Board Governor Lisa Cook.

White House Communications Director Steven Cheung called Pulte one of the president’s “most loyal and important advisors” on Thursday.

“Efforts by the Fake News to sow division inside of President Trump’s all-star administration will not work and are a pathetic attempt to distract away from all of the victories being delivered for the American people,” Cheung said. “He is fully committed to the America First agenda and works tirelessly every day to pursue that.”

Last month, after Swalwell was referred to the Justice Department, a group of Senate Democrats sent a letter to the GAO, an independent, nonpartisan agency that supports Congress, requesting that the agency “promptly” open a formal investigation into Pulte’s actions.

The senators have asked GAO to detail any changes Pulte has made to FHFA’s standard mortgage-fraud procedures since his confirmation.

“Mr. Pulte’s actions demand scrutiny,” the letter said. “It is unclear why Pulte made these claims, how he accessed the information as Director to make such claims, and whether and how official FHFA resources —staff time, government communications systems, or privileged data—were used to do so.”