President-elect Donald Trump has announced his intention to appoint Bill Pulte as the next director of the Federal Housing Finance Agency (FHFA). This decision comes after current FHFA head Sandra Thompson revealed her plans to retire on January 19, one day before Trump’s inauguration.
According to Reuters, the Trump administration is expected to prioritize ending the conservatorship of Fannie Mae and Freddie Mac. These two mortgage giants have been under government control since the 2008 financial crisis and steps have already been taken in his first term towards moving them away from this control.
In response to this news, Mortgage Bankers Association president and CEO Bob Broeksmit stated that they are looking forward to working with Pulte and FHFA staff on policies that will increase housing supply, create affordable opportunities for homebuyers and renters, protect taxpayers, maintain a strong secondary mortgage market for single-family and multifamily lenders. He also emphasized that MBA is ready to collaborate with both Congress and the administration in ensuring a smooth transition out of conservatorship for Fannie Mae and Freddie Mac. This includes securing congressional approval for an explicit federal backstop for their mortgage-backed securities in order prevent any major disruptions in these markets.
Pulte currently serves as CEO of private equity firm Pulte Capital Partners which was founded by his grandfather William Pulte who also established homebuilder company Pultegroup. With this nomination announcement from President-elect Trump it seems likely that ending GSE conservatorship will be high on their agenda going forward.
