Federal Housing Finance Agency cuts budget for inspector general staff by 80%

FHFA: The Federal Housing Finance Agency is the independent federal regulator responsible for overseeing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to ensure safety and soundness in the U.S. housing finance system. It also maintains an Office of Inspector General to provide independent oversight and investigate fraud, waste, and abuse. The news centers on the agency's recent announcement of budget reductions for that inspector general function. Pulte: William J. Pulte serves as Director of the Federal Housing Finance Agency, a position to which he was appointed by President Donald Trump and sworn in during 2025. In this role he oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Banks while directing agency policy on housing finance regulation. The current news concerns his decision to implement budget cuts targeting the agency's inspector general office. Watchdog Role: The FHFA inspector general conducts independent audits, investigations, and enforcement actions related to housing finance programs and entities. Oversight Reduction: The Federal Housing Finance Agency has directed major budget cuts to its Office of Inspector General. Congressional Response: Democratic congressional leaders have publicly condemned the funding reductions and called for the FHFA Director's resignation.