Bill Pulte, President Donald Trump’s choice to lead the Federal Housing Finance Agency (FHFA), sat Thursday for a confirmation hearing with the Senate Committee on Banking, Housing and Urban Affairs alongside nominees for three other administration positions.
The lion’s share of questioning from senators first went to Consumer Financial Protection Bureau (CFPB) director-designate Jonathan McKernan and then to Pulte. Each of them are expected to play key roles in the regulation of the U.S. housing system if they areconfirmed.
In his opening remarks, Pulte briefly mentioned the conservatorships of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.
“While their conservatorship should not be indefinite, any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressure on mortgage rates,” he said.
Sen. Jack Reed (D-R.I.) asked about ongoing support for the Housing Trust Fund, citing its impact to support construction of homes for low-income Americans.
Pulte said he would follow applicable laws and statutes, calling affordable housing “a very big passion of mine,” while vowing to work with Reed and other lawmakers. But he also said he would assess where such funds are being directed.
“I think one of the opportunities [is] to see where that money is going, and if we are using the money as wisely as we can. And I think now, having a housing and mortgage person in charge of it, we look forward to, if confirmed, going in and seeing where that money is being spent, and making sure that as many homes are being built as possible through these funds.”
Multiple senators asked Pulte for his thoughts on the need for new construction to bolster housing supply. Pulte said his belief is that supply is key to achieving the president’s stated objective to lower housing prices. He also said that manufactured housing is something that should be a more prominent part of the wider conversation.
“Manufactured homes are very well-built structures, and if confirmed as FHFA director, I believe that there are really some great opportunities between my friend and colleague at HUD, Scott Turner, in terms of manufactured housing, as well as on the mortgage side at FHFA,” Pulte said.
In an odd exchange between Pulte and Sen. John Kennedy (R-La.), Kennedy seemed more focused on repeatedly pressing Pulte with combative questions regarding Federal Housing Administration (FHA) programs.
While Pulte aimed to specify that many of the programs Kennedy asked about were under the purview of the U.S. Department of Housing and Urban Development, not the FHFA, Kennedy pressed on.
“I appreciate all that, but don’t start talking like a bureaucrat. You’re not confirmed yet,” Kennedy said at one point. “We got a problem here. You’ve got to address it.”
Sen. Catherine Cortez Masto (D-Nev.) gave her read of the exchange, saying that the line of questioning from Kennedy “got off the rails there for a minute, and I saw you struggling there, and rightfully so,” she said. “Let’s talk about the agency that you are actually nominated for, which is the Federal Housing Finance Agency, not FHA, which you have no control over.”
