Compliance concerns surface at Fannie Mae following internal probe

A probe into Fannie Mae uncovered compliance and governance concerns involving FHFA director Bill Pulte and other senior officials. The result, so far at least, was not to address the concerns uncovered but to fire staff in Fannie Mae’s ethics and internal investigations unit. The move raises even more concerns at the government-sponsored enterprise.

The Wall Street Journal first reported on the probe conducted by Fannie Mae investigators into Pulte’s access to mortgage records for Democratic officials, including New York Attorney General Letitia James. The records were used to develop charges of mortgage fraud against James. This investigation was then elevated to FHFA Acting Inspector General Joe Allen last month and then forwarded to the U.S. attorney’s office in eastern Virginia, according to the report.