President Donald Trump appointed FHFA Director Bill Pulte as acting director of national intelligence, a role he will hold alongside his housing finance duties. Fannie Mae and Freddie Mac shares fell more than 3% on the news, extending year-to-date losses past 30%. The dual appointment raises governance and conflict-of-interest concerns for the government-sponsored enterprises still under federal conservatorship.
President Donald Trump appointed Federal Housing Finance Agency Director Bill Pulte as acting director of national intelligence, a role he will hold alongside his housing finance duties. Fannie Mae and Freddie Mac shares fell more than 3% on the news, extending year-to-date losses past 30%. The dual appointment raises governance and conflict-of-interest concerns for the government-sponsored enterprises still under federal conservatorship.
Fannie Mae and Freddie Mac common shares fell more than 3% Tuesday after President Donald Trump appointed Federal Housing Finance Agency Director Bill Pulte as acting director of national intelligence, a dual role that injects governance uncertainty into the mortgage giants already down more than 30% year to date.
"The concentration of power raises legitimate questions about oversight bandwidth and potential conflicts of interest at a critical juncture for the housing finance system," said Jaret Seiberg, financial policy analyst at TD Cowen. Pulte will continue serving as FHFA director and chairman of both Fannie Mae and Freddie Mac while heading the Office of the Director of National Intelligence, Trump said in a Truth Social post.
The appointment marks Trump's second replacement for Tulsi Gabbard, who resigned last month citing her husband's cancer diagnosis. Pulte, who has no known background in intelligence or national security, was confirmed as FHFA director last year and has been among the most aggressive advocates within the administration for investigating Trump's political opponents, according to the New York Times. Trump said Pulte "has deep experience managing the most sensitive matters in America, the safety and soundness of the Markets, and over 10 Trillion Dollars at Fannie Mae/Freddie Mac."
The dual mandate injects uncertainty into the FHFA's oversight of the government-sponsored enterprises, which have remained under federal conservatorship since the 2008 financial crisis. The FHFA serves as regulator and conservator of Fannie Mae and Freddie Mac, which together guarantee or own roughly half of the $12 trillion U.S. mortgage market. Pulte's expanded responsibilities raise questions about who will manage day-to-day oversight of the GSEs' operations, including their role in purchasing and guaranteeing mortgages that underpin the housing finance system.
The development comes as the housing market faces headwinds from elevated borrowing costs. The 30-year fixed mortgage rate stood at 6.30% as of late April, according to Freddie Mac data, after surging from 5.98% in late February following the outbreak of the U.S.-Israel conflict with Iran. New single-family home sales fell 11.3% year over year in April to a seasonally adjusted annualized rate of 622,000 units, missing the 660,000 consensus estimate, according to Census Bureau and HUD data. Available supply has climbed to 489,000 units, representing a 9.4-month absorption pace, the highest since the pandemic era and giving builders reason to pull back on new construction starts. The typical new home sold in April carried a price of $422,500, reflecting a 2.2% year-over-year gain. Residential investment has now contracted for five consecutive quarters, government data show, as single-family starts and permitting activity both moved lower in April.
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