Democrats on the U.S. Senate Committee on Banking, Housing and Urban Affairs have called on Federal Housing Finance Agency Director Bill Pulte to reverse a reduction in the agency’s Office of Inspector General budget to USD 20 million for fiscal 2027. The senators contend that the cut, which exceeds 60% of the office’s fiscal 2026 operating budget, violates the FHFA’s statutory obligation to provide its independent watchdog with the resources needed to perform its functions. The Office of Inspector General has warned that the funding level would force it to wind down operations, reduce staffing by about 70% to 80% and discontinue essentially all criminal investigations. This would remove its capacity to investigate mortgage, bank and other fraud schemes involving FHFA-regulated entities, as well as impede oversight of the agency and the U.S. mortgage finance market. The senators demanded funding at least equal to the office’s original fiscal 2027 request.
U.S. Senate Committee on Banking, Housing and Urban Affairs Democrats call for reversal of over 60% cut to FHFA watchdog funding
U.S. Senate Banking Committee Democrats have urged FHFA Director Bill Pulte to reverse an over 60% reduction in the agency watchdog’s fiscal 2027 budget to USD 20 million. The Office of Inspector General warned that the cut would reduce staffing by about 70% to 80% and end essentially all of its criminal investigations.