A confidential data breach inside Fannie Mae has triggered a political and regulatory storm, raising concerns about improper influence, potential collusion and escalating tension within the U.S. housing sector.<\/p>\n
According to internal emails reviewed by the Associated Press, a close ally of Federal Housing Finance Agency (FHFA) Director Bill Pulte obtained sensitive mortgage pricing data and shared it with Freddie Mac a key competitor prompting alarm among senior Fannie Mae officials.<\/p>\n
The information was provided by Lauren Smith, Fannie Mae\u2019s head of marketing, who acted \u201cas per Director Pulte\u2019s ask,\u201d according to an Oct. 11 email. The disclosure included confidential lender-level pricing data that executives warned should \u201cnever be shared.\u201d<\/p>\n
\u201cThis is a problem\u2026 that is confidential, competitive information,\u201d wrote Malloy Evans, Fannie Mae\u2019s senior vice president for single-family mortgage operations. Evans copied the company\u2019s CEO, Priscilla Almodovar, and asked top legal advisers to assess the potential legal risks.<\/p>\n
Within days, Evans, Almodovar and Fannie Mae\u2019s general counsel, Danielle McCoy all of whom raised concerns were removed from their positions. Internal ethics officials investigating Pulte\u2019s actions were also dismissed. Meanwhile, Pulte loyalist John Roscoe was promoted to co-president, and chief operating officer Peter Akwaboah became acting CEO.<\/p>\n
The sequence of events has intensified scrutiny of Pulte, a political ally to President Donald Trump, who was appointed earlier this year to oversee the FHFA and has since cultivated a powerful and controversial role within the housing finance system.<\/p>\n
Democrats condemned the dismissals and the alleged misuse of confidential information, calling for congressional oversight.<\/p>\n
\u201cThis is another example of Bill Pulte weaponizing his role to do Donald Trump\u2019s bidding,\u201d said Sen. Elizabeth Warren. She said the episode raises \u201csignificant questions\u201d and called for Pulte to testify before Congress.<\/p>\n
Pulte and Smith did not respond to requests for comment.<\/p>\n
At just 37, Pulte heir to a prominent homebuilding family \u2014 has emerged as one of the most influential figures in U.S. housing finance. He also appointed himself chairman of both Fannie Mae and Freddie Mac, placing trillions of dollars in mortgage assets under his direct oversight.<\/p>\n
His actions have already reshaped industry policy. In June, he directed Fannie Mae and Freddie Mac to explore the acceptance of cryptocurrency in mortgage purchasing criteria. Critics warned the plan could destabilize an already fragile housing market.<\/p>\n
Last week, he persuaded Trump to consider implementing 50-year mortgages a move economists say may reduce monthly payments but dramatically increase total loan costs.<\/p>\n
The recent leak traces back to early October, when Trump criticized major homebuilders on social media, accusing them of restricting supply.<\/p>\n
\u201cI\u2019m asking Fannie Mae and Freddie Mac to get Big Homebuilders going,\u201d Trump posted.<\/p>\n
Pulte swiftly responded: \u201cOn it.\u201d<\/p>\n
Emails show that Fannie Mae staff rapidly began compiling sensitive mortgage data at Smith\u2019s direction. Experts warned that sharing such information with a competitor could raise concerns about rate coordination or market manipulation.<\/p>\n
\u201cThis could put the company at risk,\u201d wrote McCoy, the general counsel.<\/p>\n
A day after the warnings, Trump published a graphic listing major homebuilders alongside the caption \u201cWe Give Them Billions,\u201d featuring Fannie Mae\u2019s logo \u2014 an image Pulte promptly reposted.<\/p>\n
Pulte has repeatedly aimed at the country\u2019s biggest home construction firms, echoing Trump\u2019s public criticism.<\/p>\n
\u201cI\u2019m looking at the Fannie Mae builder data,\u201d he posted in October. \u201cWe buy easily over $20 billion in THEIR LOANS!\u201d<\/p>\n
Analysts say his public statements combined with internal access to mortgage details raise conflict-of-interest concerns.<\/p>\n
The Federal Housing Finance Agency issued a brief statement stressing compliance with federal regulations. Fannie Mae said it takes legal obligations \u201cvery seriously.\u201d Freddie Mac declined to comment.<\/p>\n
However, housing market observers say the turmoil has shaken confidence at a critical moment, with affordability at historic lows and demand far outstripping supply in major states.<\/p>\n
The unfolding situation is expected to draw congressional attention in the coming weeks, with lawmakers pushing for hearings into whether political influence compromised the integrity of the nation\u2019s mortgage finance system.<\/p>","protected":false},"excerpt":{"rendered":"
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