Bill Pulte hints at cost-cutting, rule-slashing at FHFA

Nominee to lead Federal Housing Finance Agency Bill Pulte hinted at rulemaking and cost-cutting efforts, similar to the Trump Administration's larger slashes, during a confirmation hearing Thursday. 

The businessman and grandson of the PulteGroup founder responded to the Senate Banking Committee's questions with mostly agreeable testimony. He did not provide specifics on topics including Fannie Mae and Freddie Mac's conservatorship, but pledged to ensure the soundness of the housing market. 

Pulte in his testimony mentioned "out-of-control costs" in the market. When asked by Sen. Thom Tillis, R-N.C., about regulation's impact on affordable housing construction, the industry veteran suggested some rules were necessary depending on localities.

"I think one of the beauties of President Trump is that he's laser-focused on slashing useless regulations, and I expect him to continue to be doing that," said Pulte.

He voiced support for the Trump Administration's push to eliminate "waste, fraud and abuse," using the same language as the controversial Department of Government Efficiency. When asked by Sen. Jack Reed, D-R.I., if he would uphold the statutory Housing Trust Fund and Capital Magnet Fund, Pulte confirmed he would but revisited his proposed cost-cutting.

"Are we using the money as wisely as we can?" said Pulte. "I think now having a housing and mortgage person in charge of it, we look forward to, if confirmed, going in and seeing where that money is being spent, and making sure that as many homes are being built as possible through these funds."

The prospective FHFA head, who would oversee the government-sponsored enterprises and the Federal Home Loan Banks, has no prior government experience. Pulte heads an eponymous investment firm, is an internet philanthropist and counts over $190 million in investments spanning housing-related enterprises and popular investment targets like Bitcoin and Elon Musk's Tesla and X companies. 

Democratic senators mostly grilled Consumer Financial Protection Bureau nominee Jonathan McKernan. The CFPB-designee, like Pulte, vowed to fulfill his prospective statutory duties. Trade groups including the Mortgage Bankers Association and National Association of Home Builders have backed Pulte and McKernan. 

In written testimony shared before senators' questioning, Pulte said he would ensure home inventory "goes to Americans," seemingly alluding to the Trump Administration's focus on immigrants' impact on the housing market. 

Ranking Member Sen. Elizabeth Warren, D-Mass., opened the hearing by suggesting Pulte would carry out plans to privatize the government-sponsored enterprises which would benefit billionaire shareholders at the expense of consumers. Warren did not press Pulte on privatization and focused her questioning on McKernan. 

Pulte later reiterated that a conservatorship exit should be done carefully to avoid putting upward pressure on mortgage rates. Sen. Thom Tillis, R-N.C., asked Pulte how he would weigh the FHFA's regulatory duties with its stewardship of the GSEs.

"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."

The FHFA designee assured lawmakers he would sustain other programs like the GSE's credit risk transfer market, and the FHL Banks' 20% affordable housing mandate. Pulte also spoke favorably of manufactured homes and pledged to work with the Department of Housing and Urban Development on such initiatives.

Pulte was less committal on other issues like loan-level pricing adjustments, which Sen. Jim Banks, R-Ind., said "screwed families with good credit scores to subsidize more families with bad credit scores." The nominee said he wanted to weigh agency data before providing a more definitive response. 

"Generally I believe that pricing should be done on risk," said Pulte. 

He also failed to definitively answer Sen. Raphael Warnock, R-Ga., on whether he would maintain resources on appraisal bias on the FHFA's website. Warnock noted how HUD Secretary Scott Turner deleted similar resources from the department's website. 

Pulte did stumble briefly when Sen. John Kennedy, R-La., grilled him on Biden-era loss mitigation measures the lawmaker suggested were creating a "house of cards" in the housing market. Kennedy shared a statistic that the majority of FHA borrowers in 2024 exceeded a 43% debt-to-income ratio, and that the FHA portfolio was larger than it was before the Great Financial Crisis. 

Pulte was cut off several times in trying to clarify to Kennedy the FHA was under HUD's purview, while the senator admonished the nominee for not being familiar with the statistics. 

Senators did not immediately announce a date for a confirmation vote for Pulte, McKernan and two other federal nominees present. Both men appear likely to be approved by the slightly Republican-leaning Senate. 

The FHFA has not disclosed its interim leadership since former director Sandra Thompson departed ahead of the Trump Administration's entrance.