mortgage fraud

WASHINGTON — When Bill Pulte was nominated as the country’s top housing regulator, he told senators that his “number one mission will be to strengthen and safeguard the housing finance system.”

But since he started the job, he’s distinguished himself by targeting President Trump ‘s political enemies. He’s using property records to make accusations of mortgage fraud and encourage criminal investigations, wielding an obscure position to serve as a presidential enforcer.

This week, Trump used allegations publicized by Pulte in an attempt to fire Lisa Cook, a member of the Federal Reserve board, as he tries to exert more control over the traditionally independent central bank.

Pulte claims that Cook designated two homes as her primary residence to get more favorable mortgage rates. Cook plans to fight her removal, laying the groundwork for a legal battle that could reshape a cornerstone institution in the American economy.

Trump said Tuesday that Cook “seems to have had an infraction, and you can’t have an infraction,” adding that he has “some very good people” in mind to replace her.

Pulte has cheered on the president’s campaign with a Trumpian flourish.

“Fraud will not be tolerated in President Trump’s housing market,” he wrote on social media. “Thank you for your attention to this matter.”

Pulte targets Democrats but not Republicans

Pulte, 37, is a housing industry scion whose official job is director of the Federal Housing Finance Agency. He oversees mortgage buyers Fannie Mae and Freddie Mac, which were placed in conservatorship during the Great Recession almost two decades ago.

Like other political appointees, he routinely lavishes praise on his boss.

“President Trump is the greatest,” he posted over the weekend.

Pulte has made additional allegations of mortgage fraud against Sen. Adam Schiff, one of Trump’s top antagonists on Capitol Hill, and New York Attorney General Letitia James, who filed lawsuits against Trump. Those cases are being pursued by Ed Martin, a Justice Department official.

“In a world where housing is too expensive, we do not need to subsidize housing for fraudsters by letting them get better rates than they deserve,” Pulte wrote on social media.

Pulte has ignored a similar case involving Ken Paxton, the Texas attorney general who is friendly with Trump and is running for Senate in his state’s Republican primary. Paxton took out mortgages on three properties that were all identified as his primary residence.

He also has mortgages on two other properties that explicitly prohibit him from renting the properties out, but both have been repeatedly listed for rent, according to real estate listings and posts on short-term rental sites.

Asked about Pulte’s investigations and Trump’s role in them, the White House said that anyone who violates the law should be held accountable.

“President Trump’s only retribution is success and historic achievements for the American people,” said Davis Ingle, White House spokesman.

It’s unclear whether Pulte is using government resources to develop the allegations he has made. Mortgage documents are generally public records, but they are typically maintained at the county level across most of the U.S., making them difficult to comprehensively review. However, Fannie Mae and Freddie Mac, which are both government-sponsored entities, purchase large tranches of mortgages from lenders, which could centralize much of that information, real estate and legal experts say.

FHFA did not respond to a detailed list of questions from the AP, including whether Pulte or his aides used government resources to conduct his research.

It’s not just mortgages

Pulte’s broadsides go beyond mortgages. He’s been backing Trump’s criticism of Jerome Powell, chair of the Federal Reserve, over expensive renovations at the central bank’s headquarters. Trump is pressuring Powell to cut interest rates in hopes of lowering borrowing costs, and his allies have highlighted cost overruns to suggest that Powell is untrustworthy or should be removed from his position.

“This guy is supposed to be the money manager for the world’s biggest economy, and it doesn’t even look like he can run a construction site,” Pulte said while wearing a neon safety vest outside the building. “So something doesn’t smell right here.”

Since returning to the White House, Trump has reached deep into the government to advance his agenda. He’s overhauled the federal workforce with the Office of Personnel Management, pushed ideological changes at the Smithsonian network of museums and fired the commissioner of the Bureau of Labor Statistics when he didn’t like a recent report on job numbers.

With Pulte in charge, the Federal Housing Finance Agency is becoming another instrument of Trump’s mission to exert control and retaliate against enemies.

It’s a contrast to the Internal Revenue Service, where Trump has unsuccessfully discussed ways to use tax policies as a pressure point. For example, during battles over higher education, Trump threatened to take away Harvard’s long-standing tax-exempt status by saying, “It’s what they deserve.”

However, there are more restrictions there, dating back to the Watergate scandal under President Richard Nixon.

“It’s been hard for the administration to use the inroads it wants to use to pursue its enemies,” said Vanessa Williamson, a senior fellow at the Urban-Brookings Tax Policy Center.

She said, “The law is very clear about taxpayer privacy and the criminal penalties at play are not small.”

Before going on the attack, Pulte played nice online

Pulte is heir to a home-building fortune amassed by his grandfather, also named William Pulte, who founded a construction company in Detroit in the 1950s that grew into the publicly traded national housing giant now known as the Pulte Group.

He spent four years on the company’s board, and he’s the owner of heating and air conditioning businesses across the U.S. He had never served in government before being nominated by Trump to lead the Federal Housing Finance Agency.

“While many children spent their weekends at sporting events, I spent mine on homebuilding jobsites with my father and grandfather,” Pulte said in written testimony for his nomination hearing. “From the ground up, I learned every aspect of housing — whether it was cleaning job sites, assisting in construction, or helping sell homes.”

He once tried to make a name for himself with good deeds, describing himself as the “Inventor of Twitter Philanthropy” and offering money to needy people online. He was working in private equity at the time, and he told the Detroit Free Press that he funded his donations with some “very good liquidity events” to power his donations.

Even six years ago, he appeared focused on getting attention from Trump.

“If @realDonaldTrump retweets this, my team and I will give Two Beautiful Cars to Two Beautiful Veterans on Twitter.”

Trump replied, “Thank you, Bill, say hello to our GREAT VETERANS!”

Pulte, whose most recent financial disclosure shows a net worth of at least $180 million, was also ramping up his political donations.

Over the past six years, he and his wife have donated over $1 million to the political efforts of Trump and his allies, including a $500,000 contribution to a super PAC affiliated with Trump that was the subject of a campaign finance complaint made with the Federal Election Commission.

The Pultes’ $500,000 contribution was made through a company they control named ML Organization LLC, records show. While such contributions are typically allowed from corporations, the same is not always true for some limited liability companies that have a limited business footprint and could be set up to obscure the donor.

The FEC ultimately exonerated the Pultes, but found in April that the Trump super PAC, Make America Great Again, Again! Inc., did not properly disclose that the Pultes were the source of the donation, said Saurav Ghosh, the Campaign Legal Center’s director of federal campaign finance reform.

Ghosh said the donation raises serious questions about Pulte’s appointment to lead FHFA.

“Why is Bill Pulte even in a government position?” he said. “Maybe he’s qualified, maybe he isn’t. But he did pour hundreds of thousands of dollars into a pro-Trump super PAC. And I think it’s clear there are these types of rewards for big donors across the Trump administration.”

Megerian, Slodysko and Hussein write for the Associated Press.

WASHINGTON — Behind a White House effort to saddle President Trump’s political foes with accusations of mortgage fraud is a 37-year-old home construction executive with a deep partisan past.

Bill Pulte, a Florida native, rose in Trump’s orbit toward the end of his first term. After courting Trump for years on social media and through generous donations, he now runs the Federal Housing Finance Agency — a perch that has allowed him to target prominent figures who have crossed the president.

In the last five months, Pulte has referred three claims of mortgage fraud against Trump’s foes to the Justice Department, leveled against Letitia James, the attorney general of New York; Adam Schiff, the Democratic senator from California; and this week, Lisa Cook, a governor on the board of the Federal Reserve.

Each has denied wrongdoing. Trump announced on Monday night that he was moving to fire Cook.

It is an unusual role for a director of the FHFA, which regulates Fannie Mae — the nation’s largest company by assets — and Freddie Mac. The two mortgage financing organizations, which support nearly half of the U.S. residential mortgage market, were taken over by the FHFA during the 2008 economic crisis.

The grandson of one of Michigan’s wealthiest and most prolific homebuilders, Pulte made a name for himself on Twitter in 2019 with public cash giveaways to individuals in need. He dubbed himself the “inventor of Twitter philanthropy,” vowing to give two cars away in exchange for a Trump retweet that year, which he received. He subsequently built a following of over 3 million.

Records show Pulte donated substantially to Trump, the Republican National Committee and related super PACs leading up to the 2024 election.

Pulte’s letters to Atty. Gen. Pam Bondi have been tightly and cautiously written. But his social media posts, celebrating the targeted attacks, have not.

“Trump becomes the first president ever to remove a sitting Federal Reserve governor,” he wrote on X, between retweets of right-wing commentators praising the move. “Mortgage fraud can carry up to 30 years in prison.”

In another post on X, quoting a CNN headline, Pulte wrote that Trump’s firing of Cook was “escalating his battle against the central bank” — seeming to acknowledge that targeting Cook was motivated by Trump’s ongoing grievances with Fed leadership.

Cook’s firing is legally dubious, and her attorney, Abbe Lowell, said in a statement that Cook plans on suing the administration while continuing to perform her duties for the Fed. Lowell also represents James in her defense against the Justice Department case.

While the Supreme Court ruled in May that Trump may fire individuals from independent federal agencies, the justices singled out the Fed as an exception, calling it a “uniquely structured, quasi-private entity.” The Federal Reserve Act of 1913 states that the president may fire a member of its leadership only “for cause.”

But cause has not been definitively established to fire Cook, with Pulte writing in his letter to Bondi that the Fed governor had only “potentially” committed mortgage fraud, accusing her of falsifying bank documents and property records to acquire more favorable loan terms.

Pulte has accused Cook of listing two homes — in Ann Arbor, Mich., and in Atlanta — as her primary addresses within two weeks of purchasing them through financing. Cook said she would “take any questions about my financial history seriously” and was “gathering the accurate information to answer any legitimate questions and provide the facts.”

Pulte’s other accusations, against James and Schiff, have been similarly superficial, publicly accusing individuals of potential criminality before a full, independent investigation can take place.

And whether those investigations will be impartial is far from clear. Earlier this month, Bondi appointed Ed Martin, a conspiracy theorist who supported the “Stop the Steal” movement after Joe Biden’s election victory over Trump in 2020, as a special prosecutor to investigate the James and Schiff cases.

Pulte accused James — who successfully accused Trump of financial fraud in a civil suit last year — of falsifying bank statements and property records to secure more favorable loan terms for homes in Virginia and New York. He made similar claims weeks later about Schiff, who maintains residences in California and the suburbs of Washington, D.C.

Schiff, who led a House impeachment of Trump during the president’s first term and has remained one of his most vocal and forceful political adversaries since joining the Senate, dismissed the president’s claims as a “baseless attempt at political retribution.”

A spokesperson for Schiff said he has always been transparent about owning two homes, in part to be able to raise his children near him in Washington, and has always followed the law — and advice from House counsel — in arranging his mortgages.

In making his claims, Trump cited an investigation by the Fannie Mae “Financial Crimes Division” as his source.

A memorandum reviewed by The Times from Fannie Mae investigators to Pulte does not accuse Schiff of mortgage fraud. It noted that investigators had been asked by the FHFA inspector general’s office for loan files and “any related investigative or quality control documentation” for Schiff’s homes.

Investigators said they found that Schiff at various points identified both his home in Potomac, Md., and a Burbank unit he also owns as his primary residence. As a result, they concluded that Schiff and his wife, Eve, “engaged in a sustained pattern of possible occupancy misrepresentation” on their home loans between 2009 and 2020.

The investigators did not say they had concluded that a crime had been committed, nor did they mention the word “fraud” in the memo.

President Trump on Tuesday accused Sen. Adam Schiff (D-Calif.) of committing mortgage fraud by intentionally misleading lenders about his primary residence being in the suburbs of Washington, D.C., rather than California, in order to “get a cheaper mortgage and rip off America.”

Schiff, who led a House impeachment of Trump during the president’s first term and has remained one of his most vocal and forceful political adversaries since joining the Senate, dismissed the president’s claims as a “baseless attempt at political retribution.”

A spokesperson for Schiff said he has always been transparent about owning two homes, in part to be able to raise his children near him in Washington, and has always followed the law — and advice from House counsel — in arranging his mortgages.

In making his claims, Trump cited an investigation by the Fannie Mae “Financial Crimes Division” as his source.

A memorandum reviewed by The Times from Fannie Mae investigators to William J. Pulte, the Trump-appointed director of the U.S. Federal Housing Finance Agency, does not accuse Schiff of mortgage fraud. It noted that investigators had been asked by the FHFA inspector general’s office for loan files and “any related investigative or quality control documentation” for Schiff’s homes.

Investigators said they found that Schiff at various points identified both his home in Potomac, Md., and a Burbank unit he also owns as his primary residence. As a result, they concluded that Schiff and his wife, Eve, “engaged in a sustained pattern of possible occupancy misrepresentation” on their home loans between 2009 and 2020.

The investigators did not say they had concluded that a crime had been committed, nor did they mention the word “fraud” in the memo.

The memo was partially redacted to remove Schiff’s addresses and information about his wife. Fannie Mae did not respond to a request for comment.

In addition to denying any wrongdoing, Schiff also suggested that Trump’s accusation was an effort to distract from a growing controversy — important to many in the president’s MAGA base — over the administration’s failure to disclose more investigative records into child sex abuse by the late financier Jeffrey Epstein, a former acquaintance of Trump’s.

There has long been rumors of a “client list” of Epstein’s that could expose other powerful men as predators. Trump promised to release such a list as a candidate, and at one point Atty. Gen. Pam Bondi appeared to say such a list was on her desk. However, the administration has since said no such list exists, and Trump has begged his followers to move on.

Schiff drew a direct line between that controversy and Trump’s accusations against him Tuesday.

“This is just Donald Trump’s latest attempt at political retaliation against his perceived enemies. So it is not a surprise, only how weak this false allegation turns out to be,” Schiff wrote on X. “And much as Trump may hope, this smear will not distract from his Epstein files problem.”

A spokesperson for Schiff echoed the senator’s denial of any wrongdoing.

According to the spokesperson, Schiff made a decision routine for Congress members from states far from Washington to buy a home in Maryland so he could raise his children nearby. He also maintained a home in California, living there when not in Washington.

The spokesperson said all of Schiff’s lenders were aware that he intended to live in both as he traveled back and forth from Washington to his district — making neither a vacation home.

Trump’s own post about Schiff, on his social media platform, was thin on details and heavy on insults, calling Schiff “a scam artist” and “crook.”

Trump alleged that Schiff reported his primary residence being in Maryland, when “he must LIVE in CALIFORNIA” as a congressman from the state.

Schiff, a former federal prosecutor, has for years laid out detailed arguments against the president — and for why his actions violated the law and warranted his permanent removal from office. Those have included Trump’s first presidential campaign’s interactions with Russian assets, his pressuring Ukraine to investigate his rival Joe Biden while U.S. military aid was being withheld from the country, and his incitement of the Jan. 6, 2021, insurrection and storming of the U.S. Capitol to prevent the certification of Biden’s 2020 electoral win over him.

Schiff also has criticized the president — and his businesses, family members and political appointees — for their own financial actions.

He recently sponsored legislation that would restrict the ability of politicians and their family members from getting rich off of digital currencies of their own creation, as Trump and his family have done. He also has repeatedly demanded greater financial transparency from various Trump appointees, accusing them of breaking the law by not filing disclosures of their assets within required time frames.

Others have accused Trump for years of financial fraud. Last year, a judge in New York ordered Trump to pay $355 million in penalties in a civil fraud case after finding that the president and others in his business empire inflated his wealth to trick banks and insurers. Trump denied any wrongdoing and has appealed the decision.

All along the way, Trump has attacked Schiff personally, accusing him of peddling hoaxes for political gain and repeatedly suggesting that he should be charged with treason. During a presidential campaign stop in California last year — when Schiff was running for Senate — Trump called Schiff “one of the sleaziest politicians in history.”

Schiff made mention of Trump’s treason claims in his response to the new allegation of mortgage fraud Tuesday, writing, “Since I led his first impeachment, Trump has repeatedly called for me to be arrested for treason. So in a way, I guess this is a bit of a letdown.”

Before leaving office, President Biden preemptively pardoned Schiff and the other members of the committee that investigated Trump’s role in the Jan. 6 insurrection, anticipating that Trump would seek to retaliate against them for their work.

Schiff said at the time that he did not want a pardon. He later dismissed an assertion from Trump that the pardons were “void” as another attempt at intimidation.

Schiff was first elected to the U.S. House of Representatives in 2000. He now splits his time between a two-story home in Potomac, Md., which he bought in 2003, according to property records, and a one-bedroom condo in a shopping area in downtown Burbank, which he bought in 2009.

In 2023, amid a bruising primary race for his Senate seat, CNN reported on Schiff’s two mortgages, citing experts who said the arrangement did not put Schiff in legal jeopardy — even if it could raise tough political questions.

CNN reported that deed records showed Schiff had designated his Maryland home as his primary residence, including while refinancing his mortgage over the years. In 2020, the outlet reported, Schiff again refinanced his mortgage and indicated that the Maryland home was his second.

CNN also reported that Schiff for years has taken a California homeowner’s tax exemption for his Burbank home, also designating it as his primary address. CNN said that exemption amounted to “roughly $70 in annual savings.” Schiff’s spokesperson confirmed that estimate in annual savings in California, and noted that Schiff did not claim such an exemption in Maryland.