Written By: Joel Palmer, Op-Ed Writer
The new director of the Federal Housing Finance Agency (FHFA) spent much of last week issuing orders that rescinded or terminated policies put in place during the previous administration.
FHFA Director William Pulte posted the series of orders on his X.com account last week. They include:
Rescission of an order issued in August 2024 directing Freddie Mac and Fannie Mae to implement policies requiring borrowers to meet certain minimum standards for rental payment flexibility and lease notices. The order states that state and local governments have these provisions in place and that they increase compliance burdens for multifamily lenders and property owners.
Rescission of an advisory bulletin issued in November 2024 that authorized FHFA to enforce compliance with prohibitions on Unfair or Deceptive Acts or Practices (UDAP). The new order noted that FHFA is not the primary administrator of UDAP statutory provisions and the previous bulletin should be rescinded to minimize conflicts or confusion over interpretation of UDAP provisions. The new order also noted that rescission of this order does not relieve FHFA of its obligation to comply with statutory regulations.
Rescission of a May 2024 advisory bulletin that required the enterprises to establish climate-risk management frameworks. Pulse’s order stated that existing frameworks at the enterprises already address climate risk management and the additional order from the previous administration imposed additional administrative costs.
Termination of Fannie Mae’s “Repair All” strategy for real estate owned (REO) properties, implemented in 2021. The strategy was designed to increase housing inventory and make homeownership more available to low-income and middle-income buyers. Pulte’s order directs Fannie to return to a portfolio neutral approach in its repair strategy, citing elongated timelines, increased costs and negative return on investment of the Repair All approach.
Termination of Special Purpose Credit Programs (SPCPs). Fannie and Freddie offered these programs to make it easier for certain populations to qualify for home lending. Pulte’s order stated that the “current level of support for SPCPs is inappropriate for regulated entities in conservatorship.”
Cancellation or closing of Biden-era directives on radon policies for multifamily properties, single-family borrower education programs regarding energy efficiency, and studying the use of solar energy on multifamily properties.
The series of orders followed a similar purge of Biden-era policies by the Federal Housing Administration (FHA) and represents the Trump administration’s emphasis on attempting to make government more efficient, in part by eliminating what it believes are unnecessary regulations.
The orders also come on the heels of Pulte making sweeping personnel changes at FHFA as well as the government-sponsored enterprises his agency regulates, Fannie Mae and Freddie Mac.
According to Politico, Pulte fired 14 members of the board of directors of both entities, and appointed himself chair of each. Politico noted in its reporting that current statute does not allow the FHFA director to hold a position with any of the entities the agency regulates.
Politico is also reported that Pulte fired Freddie Mac CEO Diana Reid. In addition, he has put dozens of FHFA employees on leave, including its chief operating officer and human resources director.
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.
