Fannie Mae ethics team gutted as they investigated FHFA head Pulte

A recent report suggests that the anti-Diversity, Equity, and Inclusion (DEI) measures used to justify the dismissal of 62 Fannie Mae employees last month might have served as a cover for terminating ethics investigators scrutinizing director Bill Pulte. These investigators were looking into whether Pulte wrongfully accessed mortgage records belonging to New York Attorney General Letitia James and other individuals opposed by former President Trump, according to the 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)

The ethics and investigations team at Fannie Mae had been responding to tips received through a whistleblower line, which allows employees to report potential internal misconduct. Staff members alleged that senior officials had improperly instructed personnel to retrieve mortgage documents pertaining to James and several other Democratic officials, as reported by the Wall Street Journal on Tuesday. Investigators were tasked with determining who authorized the document searches, whether Pulte acted within his authority, and if proper protocols were adhered to, sources close to the matter informed the WSJ.

Among those laid off from the Federal National Mortgage Association, approximately twelve individuals were part of the ethics compliance office. This significantly weakened the team as it was investigating a high-ranking Federal Housing Finance Agency official closely associated with Pulte, according to the Washington Post. It remains unclear if this individual was Pulte himself, whose predecessor was removed after stating there was insufficient evidence to charge top Democratic officials with wrongdoing.

The ethics group escalated their findings to the Office of Inspector General for the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and its counterpart Freddie Mac. Acting Inspector General Joe Allen forwarded the case to the U.S. Attorney’s Office in Eastern Virginia, sources indicated. Subsequently, Allen was reportedly dismissed by the compliance team.

Director of the Federal Housing Finance Agency Bill Pulte speaks with reporters at the White House, Tuesday, Sept. 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)
Director of the Federal Housing Finance Agency Bill Pulte speaks with reporters at the White House, Tuesday, Sept. 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

The case eventually reached Lindsey Halligan, the newly appointed U.S. Attorney for the Eastern District of Virginia. A former aide to the White House and personal attorney to Trump, Halligan assumed her role shortly after Trump dismissed her predecessor, Erik Siebert, who had stated there was not enough evidence to pursue cases against individuals Trump viewed as adversaries.

Halligan proceeded to indict James Comey on September 25 for allegedly lying to Congress and Letitia James on October 9 for purported mortgage fraud. Both defendants have entered pleas of not guilty. James is actively seeking to have her charges dropped and to have Halligan’s appointment declared invalid.

Halligan indicted James Comey on Sept. 25 for allegedly lying to Congress, and James for alleged mortgage fraud on Oct. 9. Both have pleaded not guilty.  James is pushing to have her case dismissed and Halligan’s appointment declared illegal.

With News Wire Services

You May Also Like

Lynette Hooker case far from ‘put to rest’ 6 months later as feds quietly reconstruct scene: former FBI agent

Lynette Hooker Case Still Unresolved as Feds Reconstruct Scene

“This is not a matter that has been closed,” said Nicole Parker,…
Police, firefighter unions back Dem NY Rep. Tom Suozzi

Police and Firefighter Unions Back New York Democrat Tom Suozzi

Two influential law enforcement and firefighter unions are throwing their support behind…
Somali gangs blamed for shooting at suburban Minneapolis homecoming game that left 2 wounded

Somali Gangs Blamed as 2 Wounded at Suburban Minneapolis Homecoming

A shooting outside a high school homecoming game in the Minneapolis suburb…
Flydubai Co-Pilot Asked to Pray, then Axed Captain — Al-Qaeda Urges More Attacks

Flydubai Co-Pilot Asked to Pray, Axed Captain; Al-Qaeda Urges Attacks

The captain of the Flydubai jet involved in Wednesday’s attempted hijacking said…
Nobu Malibu chef killed in crash after teen driver hits parked car on PCH

Nobu Malibu Chef Killed After Teen Driver Hits Parked Car on PCH

A veteran chef from the renowned Nobu Malibu was killed early Saturday…
Reservoir dogs are protecting NYC's water supply from invasive species

Reservoir Dogs Help Protect New York City’s Water Supply From Invasive Species

New York City’s drinking water has some unlikely new protectors: a team…
Supreme Court to weigh energy companies' bid to end Boulder climate-change lawsuit

Supreme Court to Consider Energy Companies’ Bid to Dismiss Boulder Climate Lawsuit

Washington — The Supreme Court returns Monday for its first session since…
France’s violent student protests raise warning for America: ‘A cautionary tale’

France’s Violent Student Protests Offer America a Cautionary Tale

Violent student demonstrations in France have prompted renewed debate over immigration and…
Former US Attorney tapped to lead independent review of Christa Pike's botched execution

Former U.S. Attorney to Lead Independent Review of Christa Pike’s Botched Execution

Tennessee Gov. Bill Lee has appointed former U.S. Attorney Ed Stanton to…
Cornell president says university 'must do better' on handling of sexual assault allegations

Cornell President Admits University Must Improve Sexual Assault Response

Cornell University President Michael Kotlikoff said Saturday that the university “must do…
Two killed, dozens hospitalized in mass shooting at homecoming party in Georgia

Two Killed, Dozens Hospitalized After Georgia Homecoming Shooting

A homecoming block party in a Georgia town ended in deadly violence…
Major the Malinois faces death as owner has just days to convince judge to spare dog from euthanasia

Major the Belgian Malinois Faces Euthanasia as Owner Appeals to Judge for Reprieve

Major has spent more than 545 days separated from his family. Now,…