FHFA nominee William Pulte pledges to follow law while senators press on conservatorship, appraisal bias and affordable housing
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Summary
William Pulte, President Trump’s nominee to lead the Federal Housing Finance Agency, told senators he would prioritize safety and soundness and follow statute on programs such as the Housing Trust Fund, while fielding questions on conservatorship exit planning, credit risk transfer and appraisal bias.
William Pulte, President Trump’s nominee for director of the Federal Housing Finance Agency, told the Senate Banking Committee on Feb. 19 that his top priorities would be strengthening the safety and soundness of the housing finance system and ensuring limited housing inventory serves American buyers.
Pulte said any exit from the conservatorship of Fannie Mae and Freddie Mac must be “carefully planned to ensure the safety and soundness of the housing market without upward pressure on mortgage rates.” He told senators he favors private capital taking on more risk where possible, and he committed to supporting a strong private credit risk transfer (CRT) market, which senators said has helped lower mortgage costs and remove risk from taxpayers since 2013.
Senators pressed Pulte about specific affordable‑housing programs and appraisal bias. Sen. Jack Reed asked whether Pulte would support the national Housing Trust Fund and the Capital Magnet Fund; Pulte said those programs are statutory and that he intends to follow the law and work to ensure they are robustly funded and deployed. Sen. Catherine Cortez Masto asked whether FHFA should continue to play a role addressing appraisal bias; Pulte said he would “work with you on that issue” and review agency data before setting firm policies.
On the question of manufactured housing, several senators — including Sen. Mike Rounds and Sen. Mark Kelly — discussed the potential to expand supply by using HUD‑approved manufactured homes and by removing regulatory barriers that add cost to builders. Pulte said he viewed manufactured housing as an opportunity to increase supply and said he would review agency data if confirmed.
Sen. John Kennedy raised concerns about underwriting standards and asked whether recent policies allowed borrowers to take larger loans than they could afford; Pulte acknowledged some borrowers take loans they cannot repay and repeatedly stressed his commitment to safety and soundness and preventing another housing crisis like 2008.
Other topics included climate‑related insurance costs and systemic risk: senators noted modeling that assigns large potential losses to real estate values due to climate effects. Pulte said FHFA’s jurisdiction is limited on insurance policy, but acknowledged insurance costs pose a threat to mortgage stability and said he would study the issue in coordination with colleagues at HUD.
Pulte emphasized his business and industry experience, recounting work at Pulte Homes and in his family’s company, and said he would go into FHFA to “understand exactly what specific data” the agency holds before making policy recommendations.
The committee did not vote on Pulte’s nomination at the hearing; senators will submit written questions for the record.
