In a dramatic Oval Office presentation this summer, Bill Pulte, the director of the Federal Housing Finance Agency, delivered what has become his signature performance. Carrying a "Ghostbusters"-style poster featuring administration officials marked for removal, Pulte informed President Trump he had identified leakers undermining the administration, according to officials familiar with the meeting.
The Rise of 'Little Trump'
Pulte, a 37-year-old heir to the PulteGroup home-building fortune, has emerged as one of the most polarizing figures in the Trump administration. Referred to by some as "Little Trump," his official role involves overseeing mortgage-finance giants Fannie Mae and Freddie Mac, which back nearly half of all US mortgages. However, Pulte has used this traditionally low-profile position to make waves through aggressive tactics that have rankled White House top brass.
The grandson of William J. Pulte, founder of the home-building giant, the younger Pulte left the company's board in 2020 after disagreements with other directors. His path to the FHFA directorship was paved through hundreds of thousands of dollars in donations to pro-Trump groups and connections forged at Mar-a-Lago, Trump's Palm Beach resort.
Controversial Tactics and Ethics Scandals
Pulte's approach has generated multiple controversies since his appointment in January 2025. In April, he referred New York Attorney General Letitia James—who brought a civil fraud case against Trump in 2022—to the Justice Department for prosecution, accusing her of falsifying records to obtain favorable loan terms.
This move triggered internal scrutiny when an ethics complaint alleged Pulte improperly obtained mortgage records of James and other Democratic officials. The complaint reached FHFA acting inspector general Joe Allen, who forwarded it to federal prosecutors in Virginia. Shortly thereafter, Allen was asked to step down, and about a dozen members of Fannie's ethics and investigations units were fired in recent weeks.
Pulte has defended the layoffs as part of efforts to rein in diversity, equity and inclusion programs, while James has called the charges against her baseless and pleaded not guilty.
White House Conflicts and Unusual Methods
Inside the White House, Pulte's methods have earned him both admirers and detractors. His penchant for carrying poster boards into meetings has become so well-known that when he shows up without one, administration aides ask where his boards are. Advisers preparing executives for meetings with Pulte now warn them that interactions could be unusual.
Pulte's relationship-building efforts have extended to Trump family members and their associates. He added Omeed Malik, a business partner of Donald Trump Jr., to the board of Fannie Mae. However, his tactics have infuriated many of Trump's advisers, leading to dramatic confrontations.
At a private club dinner, Treasury Secretary Scott Bessent grew so incensed by Pulte that he threatened to punch him "in the f—ing face" after hearing that Pulte had been badmouthing him to Trump. The president subsequently told both men to play nice.
Radical Housing Policy Proposals
Pulte has championed several controversial policy initiatives, most notably the introduction of a 50-year mortgage in the United States—a proposal that received a cool reception in Washington, even from many conservatives. He has also made an aggressive push for swift public offerings of Fannie and Freddie, envisioning a new entity called the "Great American Mortgage Corporation."
The two mortgage giants have been under government control since the 2008 financial crisis, and IPOs would represent complex, high-stakes transactions. Pulte's fast timeline has been a key flashpoint in his feud with Treasury Secretary Bessent, who advocates a more careful approach to avoid driving up mortgage rates.
In a concerning move for some observers, Pulte has allowed Fannie and Freddie to ramp up purchases of mortgage-backed securities as they did before the 2008 crisis, hoping to boost earnings ahead of potential IPOs. This strategy was specifically restricted after the financial crisis when subprime mortgage problems triggered massive Wall Street losses.
Industry Backlash and Internal Reshuffling
Pulte recently summoned executives from large home builders to the Commerce Department, where he and Commerce Secretary Howard Lutnick accused them of contributing to the home-affordability crisis. The meeting struck attendees as unusual since FHFA lacks direct regulatory authority over home builders.
Builders attempted to explain that higher interest rates, economic uncertainty, and local regulations were constraining housing activity. Some left with the impression that those who didn't comply with government requests would face punishment.
Meanwhile, Pulte has dramatically reshaped the FHFA itself, making himself chairman of the boards of Fannie and Freddie, axing directors and executives, and installing new leaders with little to no known experience in mortgage finance. These changes have rattled lenders and mortgage-backed securities investors, some of whom have reached out to the Treasury Department with concerns.
Mortgage Bankers Association CEO Bob Broeksmit recently sent a video to members acknowledging that "from the outside, things look unsteady" while assuring them that Fannie and Freddie executives had given him "assurance that things are more in control than they may appear."
Despite growing internal opposition, Trump has resisted calls to replace Pulte, telling confidants he appreciates his loyalty—a quality the president consistently values in his administration officials. As the housing market faces ongoing challenges, Pulte's controversial leadership continues to create both waves and worries in Washington and financial circles.
