Democrats Cry Foul Over Funding Cuts to Watchdog of Top Mortgage Regulator

Democrats traded barbs with the Trump Administration's housing czar this week, as the Federal Housing Administration said it was cutting funding for its inspector general—an internal watchdog for the agency that oversees Fannie Mae and Freddie Mac.The FHFA Office of Inspector General—which audits FHFA and its programs—informed the Senate Committee on Banking and Urban Affairs that its budget would be more than cut in half. While FHFA initially planned to allot the OIG $55 million in the 2027 fiscal budget, that will be reduced to $20 million. In a letter, acting FHFA Inspector General James Hodge expressed concern that this would lead to drastic cuts at the agency.On X, FHFA Director Bill Pulte called the move "good financial stewardship to align our IG’s office with its Peer IG Offices." Pulte has enacted other changes at FHFA, cutting its budget while calling for investigations of President Donald Trump's political enemies.Hodge said in the letter he first found out about the planned cuts Aug. 31. They could mean cuts of up to 70% to 80% of its staff. He said it could also reduce the OIG's ability to investigate fraud. Since 2011, the OIG's criminal enforcement program has secure...