Pulte targets DEI at FHFA, hints at GSE cost-cutting

Bill Pulte is reigning in diversity efforts at the Federal Housing Finance Agency. 

On Friday, the FHFA chief announced the changes via X, the social media platform where he's communicated about much of the work he's done since taking office less than a month ago. The posts were about the rescinding of three advisory bulletins relating to oversight of diversity initiatives. On Monday Pulte stated that diversity, equity and inclusion "nonsense" was being slashed. 

"Consulting contracts that waste money and other DEI nonsense is being stripped away," wrote Pulte in a post to X Monday afternoon. "Now, Fannie Mae and Freddie Mac can finally work on things that make housing more affordable for Americans!"

In another X post, Pulte wrote the government-sponsored enterprises have been "filled with bloat, excessive spending and worse — that ends now." Past media reports have alleged a Department of Government Efficiency operative was working at the FHFA, and it's unclear if Pulte was suggesting that the cost-cutting task force would operate within his agency.

Pulte's X posts on Friday night shared orders rescinding advisory bulletins, which the filings say had imposed a regulatory burden on the FHFA and the Federal Home Loan Banks.

One order targeted two bulletins, which outline supervisory expectations for diversity and inclusion programs, and data collection for FHL Banks and their Office of Finance boards of directors, respectively. Those bulletins were issued in 2020 and early 2021, when former director Mark Calabria was in charge.

The second order rescinded a 2024 Advisory Bulletin explaining the "D&I Examination Rating System" the FHFA had to use beginning this year to assess D&I programs at the FHL Banks, Fannie Mae and Freddie Mac. 

The moves are in line with the Trump administration's larger goal to eliminate DEI initiatives across the government. The Secretary of the Department of Housing and Urban Development, Scott Turner, has also said "DEI is dead" at his department, and in March rejected a hurricane recovery plan for Asheville, North Carolina due to its DEI criteria.

Pulte, a prolific user of the website formerly known as Twitter, has posted 12 FHFA orders on his profile since his March 21 confirmation. All of those orders were issued to rescind bulletins or policies, ranging from climate-related risk management efforts to "special credit purpose programs."

The director in an X post Monday lauded his actions, suggesting the deregulatory moves "have made the market more safe, sound and affordable."

Outside of his X announcements, the FHFA director has made larger changes behind the scenes, shaking up the boards of Fannie Mae and Freddie Mac earlier this month. He has hinted at cost-cutting since his confirmation hearing in February, and the FHFA has reportedly laid off some staff, although the agency has been largely mum on its moves.