The Federal Housing Finance Agency’s conservatorships of Fannie Mae and Freddie Mac should not be indefinite, but “any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressures on mortgage rates,” Bill Pulte said today during a Senate hearing on his nomination to lead the FHFA.
Pulte is CEO of the private equity firm Pulte Capital Partners and a philanthropist. The Senate Banking Committee held a hearing to consider President Trump’s nomination of Pulte along with the nominations of Johnathan McKernan to be Consumer Financial Protection Bureau director, Jeffrey Kessler to be undersecretary of commerce for Industry and Security at the Department of Commerce, and Stephen Miran to be chairman of the Council of Economic Advisors.
Pulte said if confirmed, “my number one mission will be to strengthen and safeguard the housing finance system. Safe and sound housing markets are the foundation of American homeownership.” Pulte also said that as agency head, he plans to meet with FHFA and Fannie and Freddie staff to see what talent they bring to the table. “I will be laser-focused on ensuring that Fannie Mae and Freddie Mac operate in a safe and sound manner,” he said.
FHFA also is the supervisor of the Federal Home Loan Bank system. Pulte was asked by committee member Sen. Catherine Cortez Masto (D-Nev.) about an FHFA review of the FHLB system published in 2023 that contained several recommended policy changes. Cortez Masto wanted to know which recommendations Pulte planned to support and implement, particularly the recommendation for the FHLBs to spend at least 20% of their net income on affordable housing. (The FHLBs have said the figure is unsustainable and noted they have voluntarily committed 15% of their income to affordable housing.)
Pulte didn’t provide specifics, but said he intends to follow the law and statute when it comes to the FHLBs “and be open-minded with anything, including the ideas you have on this matter.”
