FHFA Director Nominee Expresses Big Goals for Agency During Senate Hearing
Written By: Joel Palmer, Op-Ed Writer
The likely next leader of the federal agency that oversees a key part of the mortgage industry testified told members of Congress last week he is prepared to lead the effort to “usher in the Golden Age of housing and mortgage accessibility.”
William J. Pulte, President Donald Trump’s nominee for Director of the Federal Housing Finance Agency (FHFA), was one of four administration nominees to appear at a joint confirmation hearing before the Senate Committee on Banking, Housing and Urban Affairs.
During his opening statement, Pulte spoke of his career in the private housing sector and laid out a broad vision for what he hopes the agency can accomplish during Trump’s second term in office.
“Housing, and the safety and soundness of the housing market is a bipartisan issue, and I firmly believe that we must work together to address the severe housing challenges facing our country,” he said.
Pulte founded and runs a private equity firm, Pulte Capital Partners LLC, which focuses on housing products. He also founded the Detroit Blight Authority, a nonprofit organization that helps clean up neighborhoods in the Detroit area, where is grandfather William Pulte founded a homebuilder in the 1950s.
“William Pulte is a businessman with a deep understanding of the housing market,” said Committee Chairman Tim Scott (R-SC) during his opening remarks. “His insight and passion for people will serve him well in leading the FHFA’s efforts to address our broken housing system.”
Ranking Committee Member Elizabeth Warren (D-MA) used her opening remarks to raise concerns about the administration’s intentions to end the conservatorships of Fannie Mae and Freddie Mac.
“I’ve got some real concerns that President Trump’s plans for our housing finance system will raise housing costs for American families and that Mr. Pulte, if confirmed, will be the one to carry out those plans,” Warren said. “A group of Trump’s billionaire friends are pushing to privatize Fannie and Freddie so they can make billions of dollars for themselves. And in the process, they could jack up costs for people trying to buy a home.”
Pulte addressed the issue of ending conservatorship in his opening statement, saying that while the current arrangements for Fannie Mae and Freddie Mac “should not be indefinite, any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressures on mortgage rates.”
Pulte said during his opening statement that his number-one mission as FHFA director will be to strengthen and safeguard the housing finance system.
“I have seen firsthand the devastating consequences of bad policy on housing and the economy,” he said.
Pulte received a handful of questions from committee members regarding appraisal bias, ridding communities of blight, agency leadership and transparency, and housing affordability.
On the question of affordability, Pulte said he hoped to eliminate waste, fraud and abuse within the agency. He also suggested that FHFA seek more opportunities to promote manufactured housing as a potential solution to the affordability issue.
When his nomination was announced in January, Pulte received support from the National Association of Home Builders (NAHB) and U.S. Mortgage Insurers (USMI).
Leading up to last week’s confirmation hearing, Pulte also received support from the Independent Community Bankers of America (ICBA) and the National Association of Realtors (NAR).
“He has amply demonstrated leadership, executive experience, and commitment to urban renewal in these roles. Mr. Pulte’s real-world experience would bring strong and effective leadership to the FHFA,” wrote ICBA President & CEO Rebeca Romero Rainey.
Added NAR President Kevin Sears: “In a recent media interview, Mr. Pulte showcased his knowledge of some of the most pressing issues in housing. He expressed a commitment to increasing housing supply and leveraging innovation in housing finance. He acknowledged that work needs to be done at the local level to reduce costs and other impediments to make more homes available for purchase. He also noted that the strength of the U.S. housing market is the current mortgage system.”
About the Author
As an NAMU® Opinion Editorial Contributor, Joel Palmer is a freelance writer who spent 10 years as a business and financial reporter and another 10 years in marketing for the insurance and financial services industries. He regularly writes about the mortgage industry, as well as residential and commercial real estate, investments, and retirement income planning. He has also ghostwritten books on starting a business, marketing, and retirement income planning.
