Bill Pulte Asks Congress for FHFA Enforcement Authority To Prosecute Mortgage Fraud

The Federal Housing Finance Agency (FHFA) requested expanded authority from Congress on Monday to prosecute mortgage fraud, according to its annual report. The agency seeks the power to bring enforcement actions in federal or state courts or for Congress to establish a federal civil cause of action for these cases. FHFA Director Bill Pulte, who took leadership in early 2025, has advocated for stronger measures against fraud, aligning with a broader initiative from the Trump administration. The agency currently receives fraud tips from entities like the 11 Federal Home Loan Banks, Fannie Mae, and Freddie Mac, and can forward these to other enforcement bodies or issue suspension orders against convicted fraudsters. However, the FHFA stated its existing legal enforcement remedies are limited, hindering its ability to directly address fraud within the housing finance market. The report emphasizes that all federal regulators of mortgage market participants should possess the capability to act against fraud. The Government Accountability Office has reportedly scrutinized some of Director Pulte's actions, while Democrats have criticized these investigations as politically motivated. The FHFA did not provide further details regarding the requested authority when contacted.