Nearly two dozen inspectors general have been removed or sidelined during Trump’s second term. The White House has also restricted the budget of the council overseeing these watchdogs, further eroding independent oversight.
A more combative FHFA under Pulte
The FHFA, established after the 2008 financial crisis to stabilise the United States mortgage market, supervises Fannie Mae and Freddie Mac—entities that guarantee around half of America’s $13 trillion mortgage market.
Under director Bill Pulte, a Trump ally, the agency has taken a more combative stance, launching criminal referrals against several of the president’s critics, including New York attorney general Letitia James, Federal Reserve governor Lisa Cook, and senator Adam Schiff.
Pulte’s leadership has not gone unnoticed. Pulte, who previously made his fortune in homebuilding, recently announced the dismissal of dozens of Fannie Mae staff as part of an internal restructuring.
Market confidence and operational risks
The FHFA declined to comment on Allen’s ouster. The agency’s website listed the inspector general’s position as vacant by Monday, though archived pages showed Allen in post as recently as late September.