U.S. Senator Elizabeth Warren has addressed concerns to Bill Pulte, the nominee for Director of the Federal Housing Finance Agency (FHFA), prior to his confirmation hearing. In a letter, Warren pressed Pulte on his stance regarding the privatization of Fannie Mae and Freddie Mac, as well as potential conflicts of interest due to his financial ties with PulteGroup and related entities.
Fannie Mae and Freddie Mac were placed into conservatorship by FHFA in 2008 during the financial crisis. As the new FHFA Director, Pulte would oversee these organizations along with the Federal Home Loan Banks. Warren emphasized that decisions about privatizing these enterprises could significantly impact homeownership costs and the housing market.
Warren noted reports suggesting President Trump intends to reprivatize Fannie Mae and Freddie Mac, which she described as a "significant undertaking" raising complex questions for housing finance. She asked if Pulte plans to end their conservatorships and whether he would engage in public input before making such decisions.
“If confirmed, will you seek to end the conservatorships of Fannie Mae and Freddie Mac? If you will seek an end to the conservatorships, what other parties, including other federal agencies, do you expect to be involved in discussions and decisions regarding an end of the conservatorships?” Warren wrote.
Additionally, Warren raised concerns about potential conflicts of interest stemming from Pulte's investments through Pulte Capital Partners and other housing-related entities. “Holdings through your investment fund...are closely tied to the housing system,” she wrote.
The upcoming confirmation hearing will allow Senate Banking Democrats to further question Pulte on these issues.