Fannie Mae’s ethics team significantly reduced during investigation of FHFA Chief Pulte.
In a controversial decision last month, Fannie Mae laid off 62 employees, a move that has been implicated in a broader investigation into potential ethical misconduct within the organization. Reports indicate that the layoffs may have served as a pretext for terminating ethics investigators who were probing the actions of Bill Pulte, the organization’s director. Specifically, these investigators were examining allegations that Pulte improperly accessed mortgage records related to New York Attorney General Letitia James and other political figures associated with former President Donald Trump.
This situation unfolded following a series of complaints made via a whistleblower tip line, which employees used to report instances of potential misconduct. Concerns were raised about whether Pulte instructed staff to access sensitive mortgage documents pertaining to James and other Democratic officials without appropriate authorization, as reported by the Wall Street Journal. Investigators sought to clarify who had ordered the document searches and whether Pulte had adhered to established protocols during the investigation.
Approximately a dozen individuals who were let go worked within Fannie Mae’s ethics compliance office, effectively dismantling this essential team at a crucial time. This department was already scrutinizing a high-ranking Federal Housing Finance Agency (FHFA) official connected to Pulte. The inquiry had previously determined that there was insufficient evidence to pursue charges against top Democrats, which raised questions about the motivations behind the recent layoffs.
The ethics group escalated its findings to the Office of Inspector General at the FHFA, which oversees the operations of both Fannie Mae and Freddie Mac. The acting inspector general, Joe Allen, subsequently filed a report with the U.S. Attorney’s Office for the Eastern District of Virginia. Soon after this escalation, Allen received a termination notice from Fannie Mae’s compliance team, highlighting the precarious position of whistleblower protections within the organization.
The findings ultimately reached Lindsey Halligan, the newly appointed U.S. Attorney for the Eastern District of Virginia, who assumed office just days after Pulte’s predecessor was dismissed for stating there was insufficient evidence to prosecute Trump’s perceived adversaries. Under Halligan’s watch, significant legal actions have unfolded, including indictments against key figures such as James Comey and Letitia James, both of whom have pled not guilty to various charges.
These developments have sparked concerns regarding the integrity of investigations tied to political figures and how companies handle internal ethics complaints. As the situation continues to evolve, further scrutiny on the actions taken by Fannie Mae and implications for corporate governance is anticipated.
With Media News Source.
