Ethics Officials Dismissed Amid Sensitive Document Probe
Senior ethics officials at American mortgage giant Fannie Mae were removed from their positions while investigating whether a prominent Donald Trump ally inappropriately accessed confidential mortgage documents belonging to New York Attorney General Letitia James and other Democratic figures. The Wall Street Journal first reported this significant development on Tuesday, revealing a complex political scandal unfolding within US government housing agencies.
The Central Allegations and Political Context
William Pulte, a staunch Trump supporter who leads the Federal Housing Finance Agency (FHFA), has publicly accused Letitia James, California Senator Adam Schiff, and Federal Reserve Governor Lisa Cook of committing mortgage fraud. All three officials have vehemently denied these allegations. Notably, James faced what many legal experts describe as specious federal charges just last month.
Legal and housing specialists have questioned the validity of all three referrals, viewing them as a thinly disguised attempt by Trump allies to target political opponents. Individual mortgage data represents some of the most sensitive personal financial information protected under US law, making these allegations particularly concerning.
Unusual Procedures and Internal Backlash
Former agency officials told investigators that mortgage fraud cases typically fall outside the FHFA inspector general's jurisdiction, which primarily functions as an internal watchdog staffed with investigative agents. The ethics team at Fannie Mae had received internal complaints indicating that senior FHFA officials ordered employees to access the mortgage documents of James and other Democratic figures.
After beginning their investigation, Fannie Mae's ethics team forwarded their findings to the inspector general's office, which subsequently passed the matter to the US attorney for Virginia's eastern district. Trump recently installed ally Lindsey Halligan in this position last month.
According to sources familiar with the situation, Halligan expressed dissatisfaction at receiving the information, which could become part of discovery materials required to be handed over to James' legal team. She reportedly forwarded the communication directly to the White House.
Widespread Dismissals and Official Responses
The consequences were swift and severe. Joe Allen, serving as acting inspector general, was asked to step down from his role. The inspector general's website currently shows the office as vacant. Approximately a dozen ethics and internal investigations staff from Fannie Mae were fired last month, including Suzanne Libby, the agency's chief ethics officer. Danielle McCoy, the agency's general counsel, also stepped down amid mounting pressure.
An FHFA spokesperson dismissed the allegations, stating: "This is more Fake News from people who are trying to impede the criminal justice system." The justice department has not yet responded to requests for comment, nor has the FHFA inspector general's office.
The situation highlights continuing concerns about the potential weaponization of government agencies and the protection of sensitive personal data against politically motivated access.
