Dont ComplyReuters reported that a report by the Federal Housing Finance Agency's Office of Inspector General, sent to lawmakers on Friday, alleges the agency refused to provide records and information during at least three evaluations, including its oversight of a multifamily lender whose loans defaulted in June 2024. The report called the obstruction "unprecedented" and said the OIG is "entitled to access 'all records.'" It said that after an apparent understanding in mid-August, FHFA notified the watchdog two weeks later that it was "drastically reducing" its funding. Reuters reported OIG staff have been told as much as 80% of positions could be cut. An FHFA spokesperson called the allegations incorrect, saying the agency "readily produced" information, completed 56 document requests and attended 16 meetings for three recent reviews. The agency has said the OIG's budget is outsized compared to other regulators.
Why it matters
Inspectors general oversee the FHFA's supervision of Fannie Mae, Freddie Mac and other housing lenders, which back most US mortgages. Reuters reported this is the first time in at least a decade the office has flagged interference with its independence in its semiannual reports.
These are unproven claims, and everyone named is presumed innocent unless proven guilty. Researched with AI assistance from the sources listed here and reviewed under our methodology.