Ethics Officials Fired Amid Mortgage Probe

A significant shake-up has occurred within Fannie Mae, with ethics officials reportedly ousted amid an investigation into the alleged improper access of sensitive mortgage records. The individuals removed were reportedly looking into whether allies of former President Donald Trump gained unauthorized access to the financial data of prominent Democrats, including New York Attorney General Letitia James.

Scrutiny Over Mortgage Record Access

The controversy centers around William Pulte, a vocal Trump supporter and head of the Federal Housing Finance Agency (FHFA). Pulte has accused James, Rep. Adam Schiff, and Federal Reserve Governor Lisa Cook of mortgage fraud. However, all three individuals deny these allegations, and analysts suggest these accusations could be part of a broader effort by Trump to target political opponents.

Mortgage data is considered highly sensitive, and the FHFA inspector general’s office, which typically serves as an internal watchdog, is not usually the entity handling such fraud investigations. The fact that Pulte made these referrals has raised eyebrows among former officials and experts, who note the unusual nature of the process.

Internal Watchdogs Removed

Amidst this review, the very ethics officials tasked with investigating Pulte’s potential misuse of mortgage records have been removed from their positions. Acting Inspector General Joe Allen was asked to step down, leaving his office vacant. Additionally, about a dozen staff members from the ethics and internal investigations teams, including Chief Ethics Officer Suzanne Libby and General Counsel Danielle McCoy, were either fired or resigned under pressure last month.

Reports indicate that Fannie Mae ethics and internal investigations officials had received complaints alleging that senior FHFA officials directed employees to access the mortgage records of James and others. These complaints were then referred to the inspector general, who subsequently forwarded the matter to the U.S. attorney for the Eastern District of Virginia. Notably, Trump recently appointed Lindsey Halligan to this role.

Conflicting Accounts and Suspicious Timing

A source suggested that Halligan was reportedly displeased upon receiving the information, which could potentially become part of the discovery process for James’s legal team. The source also alleged that Halligan forwarded the information to the White House, though Halligan has denied this, calling the claim ‘Fake News.’ A spokesperson for the FHFA stated, ‘This is more Fake News from people who are trying to impede the criminal justice system.’

Conversely, Pulte has claimed that the employees were terminated as part of a larger initiative to combat diversity, equity, and inclusion (DEI) efforts. However, many observers find the timing of the removal of these internal watchdogs, who were investigating Pulte’s potential access to sensitive mortgage records, highly suspicious.