CFPB and FHFA nominees confirmation hearings: Live coverage

In a brief exchange with Sen. Tina Smith, R-Minn., Federal Housing Finance Agency-designee Bill Pulte commented on homeowners insurance, which has skyrocketed in recent years. 

"The FHFA is somewhat limited in terms of its jurisdiction," said Pulte. "I will just make a general comment however that the cost of insurance is insane in this country."

Sen. Dave McCormick, R-Penn., asked Pulte about weighing the agency's dual role as a regulator, and as conservator of Fannie Mae and Freddie Mac since 2008. Pulte reiterated his brief written testimony and said an exit from conservatorship should be carefully planned to avoid mortgage market disruption. 

"I think that the conservatorship as well as the regulatory aspect are equally important," said Pulte. "However, the regulatory aspect of the job, if confirmed, is absolutely critical, because if we allow for another 2008 housing crisis, we just can't let that happen."

Sen. Jim Banks, R-Ind., asked Federal Housing Finance Agency-designee Bill Pulte his thoughts on loan-level pricing adjustments which are much-maligned among mortgage lenders. 

The lawmaker accused the Biden Administration of changing the formula for LLPAs which "screwed families with good credit scores to subsidize more families with bad credit scores." The pricing adjustments on government-sponsored loans can weigh heavily on borrowers. 

The designee said he wants to weigh agency data before providing a definitive response on LLPAs. 

"Generally I believe that pricing should be done on risk," said Pulte. "To avoid another 2008 or housing crisis, we've got to ensure the safety and soundness of the housing market."

Sen. Tina Smith, D-Minn., told McKernan that she was bothered by his response to Sen. Warner said that he wouldn't say that the CFPB returning $20 billion to consumers was a good thing. 

She said that acting CFPB Director Russell Vought dropped a number of lawsuits on Thursday that the CFPB brought under former Director Rohit Chopra, including one against Capital One for failing to pay higher interest rates that it had promised consumers on certain savings accounts.

"Elon Musk or Russell Vought, or whoever is in charge, is saying that they're going to drop these lawsuits. How do you respond to this?" Smith asked. 

McKernan responded: "Senator, if I'm confirmed, I'm the director."

Federal Housing Finance Agency-designee Bill Pulte doubled down on his desire to cut down on waste, fraud and abuse, in response to a question from Sen. Bill Hagerty, R-TN. He also made a vague reference to out-of-control costs in the housing market.

Pulte also spoke favorably on manufactured homes, which the industry has viewed as a solution to limited housing inventory, and pledged to work with the Department of Housing and Urban Development on the sector. 

Pulte did not answer definitively whether he would maintain appraisal bias resources on the agency's public-facing website. Sen. Raphael Warnock, R-GA, asked Pulte about the issue after mentioning Department of Housing and Urban Development Secretary Scott Turner deleted similar resources from HUD's website. 

Pulte said he was familiar with the topic from his experience in Detroit with The Blight Authority nonprofit, and said he looked forward to working on the issue with Warnock. 

"I'd love the benefit of being inside the organization before giving definitive answers," said Pulte, when asked a yes-or-no question by Warnock on keeping the resources online.