Congressional Watchdog Will Investigate FHFA Chief Bill Pulte

The U.S. Congress' watchdog said this week it will investigate whether Federal Housing Finance Agency Director Bill Pulte abused his position and government resources to accuse President Donald Trump's perceived enemies of crimes, according to a letter from the agency reviewed by Reuters.

The probe by the Government Accountability Office, an independent investigative agency of the legislative branch, follows a November request by eight Democratic U.S. senators that the agency “promptly” investigate whether Pulte's referrals of prominent Democrats and public officials to the Justice Department were motivated by partisan politics or constituted a misuse of government resources.

“GAO accepts your request as work that is within the scope of its authority,” A. Nicole Clowers, a managing director at GAO, wrote in a letter to the legislators on Monday.

A GAO spokesperson in a statement Thursday morning confirmed the probe and said that no timeline for its investigation has yet been established. An FHFA spokesperson declined to comment. Steven Cheung, a White House spokesperson, in a statement defended the FHFA director, saying: "Bill Pulte is one of the President's most loyal and important advisors who is doing a great job."

As head of the FHFA, an agency that oversees elements of the mortgage market, Pulte has been an outspoken critic of people deemed enemies by the White House. He has accused prominent officials targeted by Trump, including New York Attorney General Letitia James and Federal Reserve Board Governor Lisa Cook, of mortgage fraud. Despite praise from Trump, Pulte's accusations have recently faced pushback from courts and prosecutors.

A federal judge last month dismissed criminal charges filed against James as a result of Pulte's referral. Federal prosecutors in Maryland also recently began to scrutinize Pulte's conduct related to Senator Adam Schiff, a California Democrat whom the FHFA boss also accused of mortgage fraud. James, Schiff and Cook, the Fed governor, have denied wrongdoing.

The lawmakers' request to the GAO was sent by senators including Elizabeth Warren, ranking Democrat on the banking committee, and Dick Durbin, ranking Democrat on the judiciary committee. “Instead of bringing down sky-high housing costs, Bill Pulte is weaponizing his role to take on Trump’s perceived political enemies,” Warren said in a statement on Thursday. “He must be held accountable for this abuse of power.”

In their request for a probe, the lawmakers cited reporting, including coverage by Reuters, that scrutinized Pulte's criminal referrals. In October, Reuters reported that Pulte skipped over the

FHFA's inspector general when making his accusations, bypassing rules meant to ensure that federal officials don’t abuse their power for partisan purposes. Last month, Reuters reported that the White House ousted that inspector general.

In its letter to the senators, GAO said it would contact the FHFA's acting inspector general “to ensure that we are not duplicating efforts,” Clowers wrote.

Officials at the FHFA's inspector general’s office didn't respond to a request for comment.