Cortez Masto Fights for Independent Oversight of Federal Housing Finance Agency

Washington, D.C. - U.S. Senator Catherine Cortez Masto (D-Nev.) pushed back against the unprecedented step taken by Federal Housing Finance Agency (FHFA) head Bill Pulte to defund the agency's Office of the Inspector General (FHFA-OIG). The proposed 60 percent funding cut is a significant break from previous funding levels and comes as Pulte is under increased scrutiny for his abuses of power. Acting Principal Deputy Inspector General James Hodge has come out against these cuts, which would make it harder for FHFA-OIG to investigate waste, fraud, and abuse throughout the agency, including at Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.

"Bill Pulte has abused the power of the FHFA to target his political rivals - on both sides of the aisle," said Senator Cortez Masto. "The Inspector General's office goes after the exact type of fraud, waste, and abuse Mr. Pulte himself is engaging in. Significantly scaling down the operations of the watchdogs who could investigate you for wrongdoing is completely unethical."

Last night, Senator Cortez Masto was blocked by Senate Republicans from passing her legislation to protect funding for the FHFA-OIG. Her legislation would mandate funding for FHFA-OIG be set at levels requested by the office, enabling them to carry out their mandate. Raising its operating budget from penalties it collects, the FHFA-OIG is tasked with investigating title and mortgage fraud, protecting mortgage lenders and home buyers from predatory practices, and ensuring a sound and secure mortgage and banking system. Despite Senator Moreno's objections, this legislation is not about overfunding FHFA-OIG, but about preserving its very operations. Read the full bill here.

Cortez Masto has also joined her Democratic colleagues on the Banking, Housing, and Urban Affairs Committee in a public condemnation of Pulte's unprecedented move to defund the FHFA watchdog. The Senators note that this reduction in funding would result in a layoff of 70-80% of the FHFA-OIG staff, including experienced law enforcement officers, drastically impeding the office's work to investigate waste, fraud, and abuse at FHFA.

The Senators conclude by stating: "Your decision is unacceptable and yet another example of this Administration's willingness to flout the law and evade accountability. It also indicates that FHFA is uninterested in finding and eliminating mortgage fraud-an issue that you have repeatedly claimed to prioritize at FHFA. We demand that you immediately reverse course and fully fund the FHFA OIG for FY27 with a budget no less than the OIG's original FY27 funding request." Read the full letter here.

Senator Cortez Masto has pushed for oversight of multiple Departments under the Trump Administration - including at the Department of the Interior, the U.S. Forest Service, the National Nuclear Security Administration, the Department of Veterans Affairs, Department of Agriculture, and General Services Administration. The Senator has been a vocal opponent of Pulte, advocating for oversight of his abuses of power as head of the FHFA and pushing back against his appointment as Acting Director of National Intelligence.

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