Trump Ousts FHFA Watchdog Joe Allen Amid Mortgage Probes Targeting Political Foes

WASHINGTON – Joe Allen, the acting inspector general for the U.S. Federal Housing Finance Agency (FHFA), has been removed from his position, sources familiar with the matter confirmed. This removal occurred after Allen reportedly provided key information to the Eastern District of Virginia (EDVA) in a case involving New York Attorney General Letitia James, a move described by sources as constitutionally required or potentially relevant in discovery. The news was first reported by Sarah N. Lynch, Chris Prentice, and Marisa Taylor.

The ouster of Allen comes as the FHFA, under Director Bill Pulte, has taken an increasingly active role in pursuing mortgage fraud cases, particularly those targeting individuals perceived as political adversaries of President Donald Trump. Pulte has publicly launched a hotline for mortgage fraud and made criminal referrals against figures such as Attorney General James, Federal Reserve Board Governor Lisa Cook, and Senator Adam Schiff.

Sources indicate that Allen's termination notice from the White House also coincided with his preparations to inform Congress that the FHFA was not cooperating with the inspector general's office. This lack of cooperation has been a point of contention, especially as Pulte reportedly circumvented the Inspector General's office in pursuing the aforementioned cases. The Trump administration has previously removed or reassigned nearly two dozen agency watchdogs.

Attorney General James, a Democrat who previously secured a $450 million fraud judgment against Trump, pleaded not guilty last month to charges of allegedly lying on mortgage documents. These charges followed Pulte's suggestion that the Justice Department investigate her. Democratic U.S. Senator Elizabeth Warren of Massachusetts reacted to Allen's removal by stating, "Director Pulte has some answering to do."

Allen, who became FHFA's acting inspector general in April 2025, previously served for 40 years at the Justice Department, holding various roles including federal prosecutor. His removal highlights ongoing tensions between the administration and independent oversight bodies, raising questions about accountability and the politicization of regulatory agencies.