US Housing Regulator Appoints New Leaders Amid Concerns Over Job Cuts and Policy Changes
The newly appointed head of the Federal Housing Finance Agency (F.H.F.A), William Pulte, has tightened his grip on the agency by ousting 14 board members at Fannie Mae and Freddie Mac. Pulte named himself chairman of both companies’ boards, leaving only two F.H.F.A directors without a seat on either board.
The shake-up has raised concerns among some that Pulte is trying to silence potential dissenters ahead of any future job cuts or changes in housing policy. Critics argue that the new leaders may prioritize business as usual over reforms.
One of the new directors, Christopher Stanley, is an executive at SpaceX who has been working with Elon Musk on efforts to downsize the federal workforce. The move has sparked fears of mass firings at Fannie and Freddie, which employ around 15,000 people.
Industry experts have warned that Pulte’s actions may be part of a larger strategy to normalize mortgage lending practices, similar to the approach taken by Tesla CEO Elon Musk’s company in its cryptocurrency venture Dogecoin. “Sure feels like they’re laying the groundwork for a DOGE-like intervention,” said Jim Parrott, a mortgage finance expert.
The F.H.F.A is responsible for regulating Fannie and Freddie, which play a critical role in the $12 trillion US mortgage market. The two companies were taken over by the federal government after the 2008 financial crisis and have been under conservatorship ever since.
Some investors and officials are pushing for an end to the government’s control over Fannie and Freddie, citing concerns about the impact on the economy. However, Pulte and Treasury Secretary Scott Bessent have expressed support for ending the conservatorship while warning against any hasty decisions that could drive up mortgage rates.
The current rate of a 30-year mortgage is around 6.7 percent, and Fannie and Freddie’s influence on mortgage lending practices remains a contentious issue.
Source: https://www.nytimes.com/2025/03/18/business/trump-doge-federal-housing-agency-cuts.html