President-elect Donald Trump has nominated Bill Pulte to serve as director of the Federal Housing Finance Agency (FHFA).
Pulte runs a private equity firm and is the founder and chairman of the Detroit Blight Authority, a nonprofit that works to refurbish blighted neighborhoods.
He is the grandson of the late William Pulte, founder of Pulte Homes, which operated in Detroit in the 1950s.
Once confirmed by the Senate, Pulte will likely start the ball rolling to bring government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac out of conservatorship and privatize them.
In a statement, Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA) congratulated Pulte for the nomination.
“We look forward to working with him and the FHFA staff on policies and programs that boost housing supply and create affordable opportunities for our nation’s homebuyers and renters while protecting taxpayers and ensuring a robust secondary mortgage market and Federal Home Loan Bank system for single-family and multifamily lenders,” Broeksmit says. “The conservatorship of Fannie Mae and Freddie Mac (GSEs) was never intended to be permanent. MBA stands ready to work with the Administration and Congress to ensure that the transition to a post-conservatorship era for the GSEs is done the right way, including the critical step that Congress approves an explicit federal backstop for the GSEs’ mortgage-backed securities, to prevent severe market disruptions.”
Seth Appleton, president of U.S. Mortgage Insurers (USMI), also applauded Pulte’s nomination, saying: “As a businessman and philanthropist, Pulte firmly understands the importance of housing and the role of private capital in the housing finance system. His career has provided him with extensive knowledge of the importance of homeownership in securing financial stability and building wealth for American families. Once confirmed, USMI looks forward to working with Pulte to prudently ensure access to affordable mortgage credit for first-time buyers while protecting taxpayers from risk and promoting safety and soundness in the housing finance system.”
Carl Harris, chairman of the National Association of Home Builders (NAHB), says Pulte has “strong ties to the home building industry” and “understands the vital need to ensure that builders and developers have access to finance new housing and that consumers can readily obtain affordable mortgage credit.”
“Once confirmed, NAHB looks forward to working with Bill Pulte to promote a safe, sound and liquid housing finance system that helps builders increase the supply of new homes and apartments to meet the nation’s housing needs,” Harris adds.