Bill Pulte, the recently appointed director of the Federal Housing Finance Agency (FHFA), has launched an aggressive campaign to combat mortgage fraud, signaling a new era of scrutiny and accountability in the housing finance sector. In a move reminiscent of crowd-sourced crime-fighting efforts, Pulte announced the creation of a public tip line on X, inviting anyone with knowledge of fraudulent mortgage activity to submit information directly to the agency via a dedicated email address.
The initiative marks a significant escalation in the FHFA’s efforts to root out fraud in the mortgage market. “There is no room for fraud in our mortgage markets. None,” Pulte declared, emphasizing that both individuals and companies would be held to the same standards of accountability.
While the specifics of how the tip line will be managed remain unclear—including who will monitor the submissions and which agencies will investigate the tips—Pulte’s message was unequivocal: the FHFA, in collaboration with the Department of Justice and other law enforcement entities, is intensifying its oversight of mortgage practices.
Recommended For You
This crackdown comes amid a documented rise in mortgage fraud. The Real Deal, citing CoreLogic statistics, notes that one in every 123 mortgage applications in the second quarter of 2024 showed signs of fraud, a risk that has increased by 8.3% year-over-year. Although not every loan defect constitutes fraud, the trend has raised alarms throughout the industry, with transaction and identity fraud showing the most significant increases.
Meanwhile, quality control reports from ACES Quality Management indicate that critical defects in mortgage loans—often related to income and employment data—also remain a persistent problem, despite some recent improvements in overall defect rates.
Pulte’s focus on deception has defined his short and tumultuous tenure at the FHFA. Since taking office in March, he has orchestrated sweeping changes at the government-sponsored enterprises Fannie Mae and Freddie Mac. Within days of his swearing-in, Pulte appointed himself chairman of both agencies and removed 14 board members. He later announced the termination of more than 100 Fannie Mae employees for what Pulte described as “unethical conduct,” including facilitating fraud. Details about the specific nature of the alleged misconduct have not been disclosed.
The financial stakes are high. Fannie Mae recently set aside $752 million for credit losses in its multifamily lending business, citing or suspecting fraud as a major contributing factor. Internal communications revealed that the agency’s exposure to just eight sponsors accused of fraudulent activity exceeded $700 million, prompting Fannie Mae to blacklist those entities, according to The Real Deal.
Pulte’s campaign has not been without controversy. In a highly publicized move, the FHFA referred New York Attorney General Letitia James to the Department of Justice for alleged mortgage fraud, accusing her of misrepresenting her primary residence status and property characteristics to obtain more favorable loan terms.
The referral, signed by Pulte, alleges that James falsified documents related to properties in Virginia and New York, potentially violating federal statutes. James’s office has pushed back, framing the referral as politically motivated and vowing not to be deterred.
As the FHFA continues to pursue new methods for recalling loans obtained through misrepresentation, the agency’s stance is clear: fraud in the mortgage market will be met with swift and decisive action. Pulte’s approach—combining public engagement with internal reform—signals a broader shift toward transparency and integrity in an industry that has long struggled with trust and compliance issues.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
