Fannie Mae ethics team gutted as they investigated FHFA head Bill Pulte

"Anti-DEI measures cited to justify laying off 62 Fannie Mae employees last month may have been a foil for firing ethics investigators looking into whether director Bill Pulte improperly obtained mortgage records for New York Attorney General Letitia James and other targets of President Trump, according to a new report. New York Attorney General Letitia James, speaks to the media after pleading not guilty outside the United States District Court in Norfolk, Va. on Friday, Oct. 24, 2025. (AP Photo/John Clark) AP Photo/John Clark"

"Fannie Mae's ethics and investigations group was acting on complaints lodged via a staffer tip line that enables whistleblowers to report potential internal misconduct. In this case, staffers had claimed higher-ups had improperly instructed people to access mortgage documents of James and other Democratic officials, the Wall Street Journal reported Tuesday. Investigators were looking into who ordered the document search, whether Pulte was within his rights to do so, and if proper procedure had been followed, people familiar with the matter told WSJ."

Anti-DEI measures were cited to justify laying off 62 Fannie Mae employees. About a dozen of those dismissed worked in the ethics compliance office, which had been investigating complaints filed via a staffer tip line. Staffers alleged higher-ups had improperly instructed people to access mortgage documents of New York Attorney General Letitia James and other Democratic officials. Investigators sought to determine who ordered the document search, whether Bill Pulte had authority to obtain the records, and whether proper procedures were followed. The ethics group referred the inquiry to the FHFA Office of Inspector General, which sent it to the U.S. attorney's office in eastern Virginia.

Read at www.mercurynews.com