WASHINGTON–Watchdogs at Fannie Mae who were fired recently were investigating FHFA Director Bill Pulte over whether he had improperly obtained mortgage records of key Democratic officials—including from a credit union, according to a new report.
“Fannie’s ethics and investigations group had received internal complaints alleging senior officials had improperly directed staff to access the mortgage documents of James and others, according to the people,” the Wall Street Journal reported. “The Fannie investigators were probing to find out who had made the orders, whether Pulte had the authority to seek the documents and whether or not they had followed proper procedure, the people said.”
Loan From Credit Union
Among the Democrats who are being investigated over alleged mortgage fraud is Federal Reserve Governor Lisa Cook, who allegedly misidentified a property as her main residence for financial gain. The loan on the property is from Bank-Fund Staff Federal Credit Union and the document reads, “Property Use: Vacation Home.”
Public Records in Fulton County, Georgia, reviewed by NBC News show that no tax exemptions available for a primary residence were sought by Cook.
New York Attorney General Letitia James has also been indicted on federal charges of bank fraud and making false statements related to a mortgage for a property in Norfolk, Va.
Like Cook, James has said the charges are without merit and has pleaded not guilty.
According to the Wall Street Journal, the employees at the FHFA who were fired elevated the probe about the James documents to the more senior Office of Inspector General for the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac and which Pulte heads. The acting inspector general then passed the report to the U.S. attorney’s office in eastern Virginia, some of the people said, the Journal report states.
A Dozen People Fired
In the wake of the probes, and other investigations inside Fannie, about a dozen members of the ethics and internal investigations unit of Fannie were fired, The Wall Street Journal has reported. Suzanne Libby, Fannie Mae’s chief ethics officer, was removed and Danielle McCoy, who served as general counsel, also stepped down after being pressured by leadership, the Journal added, while the FHFA’s acting inspector general, Joe Allen, who sent the internal investigation to the prosecutors, was asked to step down from his role shortly after, the people said.
Pulte has cited to diversity, equity and inclusion (DEI) as a reason for layoffs at the company.
‘Fabricated’ Claims Alleged
In response to a request for comment, a spokesperson for the FHFA said: “The anonymous sources in this story are attempting to obstruct the criminal justice system by completely fabricating false and defamatory claims,” the Journal reported.
