1 00:00:02,520 --> 00:00:08,760 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. A big bomb thrown 2 00:00:08,800 --> 00:00:10,840 Speaker 1: into the mix by Bill Pulty, the head of the 3 00:00:10,920 --> 00:00:14,960 Speaker 1: nation's leading finance agency, asking the US Justice Department to 4 00:00:15,120 --> 00:00:20,160 Speaker 1: investigate Federal Reserve Governor Lisa Cook allegations made by Bill 5 00:00:20,200 --> 00:00:24,360 Speaker 1: Pulty citing documents that his agency received involving mortgage fraud. 6 00:00:25,160 --> 00:00:27,680 Speaker 1: The Justice Department has weighed in and said that they 7 00:00:27,720 --> 00:00:32,479 Speaker 1: are considering looking deeper into the matter. Lisa Cook herself 8 00:00:32,720 --> 00:00:35,360 Speaker 1: has already responded, saying that she is willing to provide 9 00:00:35,400 --> 00:00:39,080 Speaker 1: any additional information that the investigators are looking for, but 10 00:00:39,120 --> 00:00:42,320 Speaker 1: that she won't be bullied into stepping down. I'm pleased 11 00:00:42,320 --> 00:00:44,879 Speaker 1: to say that Bill Pulty joins us right now. He 12 00:00:44,960 --> 00:00:48,040 Speaker 1: is the director, of course of the Federal Housing Finance Agency. 13 00:00:48,400 --> 00:00:50,839 Speaker 1: And Bill, I do want to start off, particularly with 14 00:00:51,360 --> 00:00:55,280 Speaker 1: the investigation, of course, that you brought to light, that 15 00:00:55,280 --> 00:00:57,960 Speaker 1: Bloomberg report has brought to light prior to that, and 16 00:00:58,000 --> 00:01:00,440 Speaker 1: the documents that are at the center of that, and 17 00:01:00,480 --> 00:01:04,440 Speaker 1: where exactly those mortgage documents originated from and how they 18 00:01:04,480 --> 00:01:05,280 Speaker 1: got to your desk. 19 00:01:06,800 --> 00:01:08,240 Speaker 2: Well, those are public documents. 20 00:01:08,240 --> 00:01:12,199 Speaker 3: Anybody who frankly can do some research with Google and 21 00:01:12,400 --> 00:01:15,560 Speaker 3: get to County websites can easily find these documents. You know, 22 00:01:15,680 --> 00:01:18,000 Speaker 3: the media, including yourself, it sounds like are going to 23 00:01:18,000 --> 00:01:20,280 Speaker 3: try to make this into some kind of witch hunt 24 00:01:20,360 --> 00:01:24,120 Speaker 3: or something like that. Quite the contrary, this is self evident. 25 00:01:24,280 --> 00:01:26,959 Speaker 3: This is black and white stuff. And frankly, the fact 26 00:01:27,000 --> 00:01:29,440 Speaker 3: that the media and so many people are asking questions 27 00:01:29,760 --> 00:01:32,040 Speaker 3: in the elite class about this goes to show that 28 00:01:32,360 --> 00:01:34,440 Speaker 3: people think that there are rules for some people and 29 00:01:34,520 --> 00:01:37,880 Speaker 3: rules for other people. Mortgage fraud is prosecuted every day 30 00:01:37,920 --> 00:01:40,800 Speaker 3: in this country, and I'm sorry to say, not really 31 00:01:40,880 --> 00:01:44,560 Speaker 3: though that a politician or a public official in this 32 00:01:44,680 --> 00:01:47,720 Speaker 3: case is now the subject of mortgage fraud. 33 00:01:48,120 --> 00:01:50,680 Speaker 2: Normal people have to deal with this nearly every day 34 00:01:50,680 --> 00:01:52,600 Speaker 2: in this country. This is nothing new. 35 00:01:52,800 --> 00:01:55,440 Speaker 3: Defrauding people is nothing new, and now all of a 36 00:01:55,440 --> 00:01:58,000 Speaker 3: sudden that you have somebody very powerful, now people have 37 00:01:58,040 --> 00:01:59,880 Speaker 3: to question it. It doesn't make any sense to me, 38 00:02:00,520 --> 00:02:03,240 Speaker 3: and I believe that I believe that she committed mortgage fraud. 39 00:02:03,560 --> 00:02:05,800 Speaker 1: When you look at the documents that you have, the 40 00:02:05,800 --> 00:02:09,680 Speaker 1: publicly available documents, I am curious whether anyone, whether you 41 00:02:09,880 --> 00:02:12,560 Speaker 1: or anyone at your agency, had a chance to actually 42 00:02:12,600 --> 00:02:16,160 Speaker 1: speak to Lisa Cook, her lawyers or any representatives about 43 00:02:16,160 --> 00:02:17,560 Speaker 1: what you found in those documents. 44 00:02:18,880 --> 00:02:21,720 Speaker 3: Obviously, while I respect the question, anything that has to 45 00:02:21,720 --> 00:02:23,840 Speaker 3: do with the federal investigation, I am not going to 46 00:02:23,880 --> 00:02:27,160 Speaker 3: comment on. However, I would say what is within the 47 00:02:27,200 --> 00:02:30,600 Speaker 3: confines of the referral letter of which I'm willing to 48 00:02:30,600 --> 00:02:31,200 Speaker 3: speak about. 49 00:02:31,560 --> 00:02:37,280 Speaker 1: What is your involvement in the investigation Bill. 50 00:02:35,639 --> 00:02:37,600 Speaker 3: Well, as you know, I'm the regulator of Fanny and 51 00:02:37,600 --> 00:02:40,040 Speaker 3: Freddie as well as the conservator of Fanny and Freddi, 52 00:02:40,400 --> 00:02:41,320 Speaker 3: and so this is. 53 00:02:42,440 --> 00:02:44,400 Speaker 2: Right in the bullseye of what my job is. 54 00:02:44,440 --> 00:02:47,120 Speaker 3: I promised before the Senate, before I was confirmed by 55 00:02:47,120 --> 00:02:50,000 Speaker 3: the Senate, that I would investigate mortgage fraud. And I'm 56 00:02:50,000 --> 00:02:51,840 Speaker 3: not going to be intimidated by anyone. I'm not going 57 00:02:51,880 --> 00:02:54,600 Speaker 3: to be intimidated by the media. The politicians. They can 58 00:02:54,639 --> 00:02:57,160 Speaker 3: say whatever they want. If it's a Republican who's committing 59 00:02:57,160 --> 00:02:58,720 Speaker 3: mortgage fraud, we're going to look at it. If it's 60 00:02:58,720 --> 00:03:00,680 Speaker 3: a Democrat, we're going to look at it. If it's 61 00:03:00,680 --> 00:03:04,120 Speaker 3: a wealthy politician or a lawyer, we're going to look 62 00:03:04,160 --> 00:03:06,480 Speaker 3: at it. So we're not just looking at everyday people. 63 00:03:06,480 --> 00:03:08,200 Speaker 3: And I'd say the one thing Romaine, which is that 64 00:03:08,440 --> 00:03:11,480 Speaker 3: we refer every we refer people almost every day. 65 00:03:11,960 --> 00:03:13,160 Speaker 2: I refer people. 66 00:03:13,880 --> 00:03:17,440 Speaker 3: Every week on a minimum, to the Department of Justice 67 00:03:17,440 --> 00:03:20,840 Speaker 3: for mortgage fraud. This is literally what I am required 68 00:03:20,880 --> 00:03:24,440 Speaker 3: to do underneath the Housing and Economic Recovery Act of 69 00:03:24,480 --> 00:03:27,040 Speaker 3: two thousand and eight, which is to ensure the safety 70 00:03:27,080 --> 00:03:28,680 Speaker 3: and soundness of the mortgage marketing. 71 00:03:28,800 --> 00:03:31,040 Speaker 1: When you say you're referring, you're talking about just rank 72 00:03:31,080 --> 00:03:34,560 Speaker 1: and file people going through your own agency documents. Is 73 00:03:34,560 --> 00:03:37,480 Speaker 1: that a routine process or is this something that has 74 00:03:37,520 --> 00:03:41,640 Speaker 1: been very specifically started over the last few weeks or months. 75 00:03:42,960 --> 00:03:46,480 Speaker 3: We look at fraud generally, we say, look, if everybody 76 00:03:46,520 --> 00:03:48,280 Speaker 3: and anybody who knows about mortgage fraud, they can go 77 00:03:48,280 --> 00:03:51,480 Speaker 3: to Fraud Tips at FHFA dot gov. We will take 78 00:03:51,520 --> 00:03:54,560 Speaker 3: in all of the requests and all of the submissions 79 00:03:54,560 --> 00:03:57,560 Speaker 3: that people have. We've poured through many of these tips. 80 00:03:57,760 --> 00:04:02,160 Speaker 3: We have seen just amount of tips on mortgage fraud. 81 00:04:02,160 --> 00:04:04,600 Speaker 3: Mortgage fraud is a huge issue in this country, so 82 00:04:04,640 --> 00:04:07,120 Speaker 3: we get it from Fraud Tips at FHFA dot gov. 83 00:04:07,400 --> 00:04:09,800 Speaker 3: We get it through traditional other means, whether it be 84 00:04:09,840 --> 00:04:11,320 Speaker 3: by mail or what have you. 85 00:04:11,960 --> 00:04:13,840 Speaker 2: And also there's stuff in. 86 00:04:13,840 --> 00:04:16,240 Speaker 3: The media all the time as it relates to mortgage 87 00:04:16,240 --> 00:04:19,120 Speaker 3: fraud so we will take it from anywhere and everywhere, 88 00:04:19,240 --> 00:04:21,320 Speaker 3: and again, our main focus is on the safety and 89 00:04:21,400 --> 00:04:22,880 Speaker 3: soundness of the mortgage market. 90 00:04:23,080 --> 00:04:25,240 Speaker 4: Okay, that makes sense. So I guess my question to you, 91 00:04:25,279 --> 00:04:27,960 Speaker 4: Bill is was there some kind of tip off to 92 00:04:28,000 --> 00:04:30,840 Speaker 4: look into Lisa Cooks documentation specifically? 93 00:04:32,560 --> 00:04:35,159 Speaker 3: As I have said publicly, there was a tip that 94 00:04:35,200 --> 00:04:38,000 Speaker 3: we received. I do not comment on the source identity 95 00:04:38,240 --> 00:04:41,800 Speaker 3: or any other means that we use during a federal investigation, 96 00:04:41,880 --> 00:04:43,839 Speaker 3: as it pertains to things that are outside of the 97 00:04:43,880 --> 00:04:48,520 Speaker 3: referral letter. You can imagine that if we start exposing, 98 00:04:48,560 --> 00:04:52,120 Speaker 3: whether it be on this investigation or other investigations, where 99 00:04:52,160 --> 00:04:54,960 Speaker 3: we receive tips from, where we get whistleblowers from. 100 00:04:55,080 --> 00:04:56,360 Speaker 2: This is a very serious thing. 101 00:04:56,400 --> 00:04:58,640 Speaker 3: And so when people are trying to, in my view, 102 00:04:58,680 --> 00:05:03,520 Speaker 3: intimidate whistleblowers, timidate tipsters, I strongly condemn that. And if 103 00:05:03,560 --> 00:05:05,680 Speaker 3: people have mortgage fraud, I encourage them to go to 104 00:05:06,200 --> 00:05:08,800 Speaker 3: fraud Tips at FHFA dot gov and send us those 105 00:05:08,839 --> 00:05:09,520 Speaker 3: mortgage tips. 106 00:05:09,600 --> 00:05:12,920 Speaker 4: Bill, have you been looking into any other FED officials 107 00:05:13,080 --> 00:05:15,960 Speaker 4: or any other government officials on something like this? Have 108 00:05:16,000 --> 00:05:18,279 Speaker 4: there been any tips to look into those? 109 00:05:19,760 --> 00:05:22,920 Speaker 3: Again, I'm not going to comment on any specific investigations 110 00:05:22,960 --> 00:05:25,599 Speaker 3: other than the ones that either have been made public 111 00:05:25,640 --> 00:05:29,400 Speaker 3: by other people or that we feel comfortable speaking to, 112 00:05:29,680 --> 00:05:32,480 Speaker 3: and that pertains to things within the confines of the 113 00:05:32,480 --> 00:05:33,200 Speaker 3: referral letter. 114 00:05:34,000 --> 00:05:37,800 Speaker 1: When we talk about that referral letter, and Bill, you've 115 00:05:37,800 --> 00:05:40,040 Speaker 1: seen the pushback on this, and we should kind of 116 00:05:40,080 --> 00:05:42,800 Speaker 1: point out here that part of the concern right now 117 00:05:42,839 --> 00:05:45,520 Speaker 1: isn't so much whether she or anyone else out there 118 00:05:45,720 --> 00:05:47,760 Speaker 1: committed fraud. But I think a lot of people would 119 00:05:47,839 --> 00:05:50,640 Speaker 1: like to know whether there is more of a quardminal. 120 00:05:50,760 --> 00:05:53,080 Speaker 1: That is the issue, because we've spent That is the issue, 121 00:05:53,120 --> 00:05:55,080 Speaker 1: because you've been interviewing me now for two minutes and 122 00:05:55,120 --> 00:05:58,000 Speaker 1: you keep asking me about all of these tangential issues 123 00:05:58,040 --> 00:06:01,440 Speaker 1: instead of asking about, you know, did she sign these documents? 124 00:06:01,480 --> 00:06:03,200 Speaker 2: I believe she did sign these documents. 125 00:06:03,440 --> 00:06:06,520 Speaker 3: But is it mortgage fraud to say that you live 126 00:06:06,560 --> 00:06:08,960 Speaker 3: in one area and not another area. Yes, it is 127 00:06:09,040 --> 00:06:11,760 Speaker 3: mortgage fraud. So you're not focusing on the fraud. You're 128 00:06:11,800 --> 00:06:15,440 Speaker 3: focusing on the investigators for purposes of trying to undermine 129 00:06:15,600 --> 00:06:18,359 Speaker 3: what it is that she did allegedly and what it 130 00:06:18,440 --> 00:06:20,880 Speaker 3: is that mortgage fraud in the risk that mortgage fraud 131 00:06:20,960 --> 00:06:21,520 Speaker 3: poses to. 132 00:06:21,600 --> 00:06:23,680 Speaker 2: The system, and we're not going to be intimidated. 133 00:06:23,720 --> 00:06:26,000 Speaker 3: I mean, we swore an oath and we are going 134 00:06:26,040 --> 00:06:28,839 Speaker 3: to continue to prosecute mortgage fraud. It doesn't matter whether 135 00:06:28,880 --> 00:06:31,920 Speaker 3: it's a Republican, a Democrat, a public official, or Joe 136 00:06:31,920 --> 00:06:32,680 Speaker 3: Blow on the street. 137 00:06:33,000 --> 00:06:35,159 Speaker 5: Absolutely we are in agreement for that. 138 00:06:35,240 --> 00:06:36,960 Speaker 1: But what we are doing here is we are actually 139 00:06:37,000 --> 00:06:40,039 Speaker 1: focusing on both issues, both the potential for fraud, and 140 00:06:40,040 --> 00:06:42,360 Speaker 1: we are digging deeper into that. And we should point 141 00:06:42,360 --> 00:06:44,960 Speaker 1: out that Bloomberg has made concerted efforts to reach out 142 00:06:44,960 --> 00:06:47,440 Speaker 1: to Lisa Cook and her representatives to the FED, as 143 00:06:47,440 --> 00:06:49,360 Speaker 1: well as the folks in the White House and administration 144 00:06:49,440 --> 00:06:52,200 Speaker 1: beyond you. At the same time, Bill, we also have 145 00:06:52,360 --> 00:06:57,080 Speaker 1: raised concern about whether this might be a weaponization of 146 00:06:57,200 --> 00:07:00,120 Speaker 1: your office, a weaponization of the White House. And I'm 147 00:07:00,200 --> 00:07:04,600 Speaker 1: curious if there has been direct I don't know, guidance 148 00:07:04,600 --> 00:07:06,159 Speaker 1: from the White House to pursue this. 149 00:07:07,880 --> 00:07:11,920 Speaker 3: We discovered this within the confines of our charter that 150 00:07:11,960 --> 00:07:15,080 Speaker 3: Congress has given us. We continue to receive tips within 151 00:07:15,120 --> 00:07:18,040 Speaker 3: the confines that Congress has given us. As I said, 152 00:07:18,120 --> 00:07:21,000 Speaker 3: people can go and email us, they can send us tips. 153 00:07:21,000 --> 00:07:24,280 Speaker 3: We encourage that to happen and that's how this was sourced, 154 00:07:24,280 --> 00:07:26,680 Speaker 3: and it's going to continue to be sourced. And you know, 155 00:07:26,720 --> 00:07:29,320 Speaker 3: we're just because now, you know, somebody said to me 156 00:07:29,640 --> 00:07:32,280 Speaker 3: earlier today, they said, you know, this is mortgage fraud. 157 00:07:32,360 --> 00:07:36,280 Speaker 3: Is being controversial by some people in the media because you've. 158 00:07:36,120 --> 00:07:37,320 Speaker 2: Really hit on power. 159 00:07:37,760 --> 00:07:41,040 Speaker 3: And that struck me because I'm like, you know, shouldn't 160 00:07:41,040 --> 00:07:42,560 Speaker 3: power be against mortgage fraud. 161 00:07:43,040 --> 00:07:44,280 Speaker 2: It just doesn't make sense to me. 162 00:07:44,400 --> 00:07:46,360 Speaker 3: Now that you have somebody who's in this type of 163 00:07:46,400 --> 00:07:49,440 Speaker 3: position and now it's controversial and maybe now mortgage fraud 164 00:07:49,440 --> 00:07:52,320 Speaker 3: isn't mortgage fraud. I mean, you saw the Federal Reserve 165 00:07:52,360 --> 00:07:55,720 Speaker 3: president from Kansas City. That was quite an odd exchange 166 00:07:55,760 --> 00:07:58,920 Speaker 3: that he had about, you know, blaming the forums and 167 00:07:58,960 --> 00:07:59,520 Speaker 3: stuff like that. 168 00:07:59,600 --> 00:08:00,600 Speaker 2: Let's call it what it is. 169 00:08:00,600 --> 00:08:04,320 Speaker 3: People have a responsibility, and people in power especially have 170 00:08:04,360 --> 00:08:07,880 Speaker 3: a responsibility to read legal documents before they sign them. 171 00:08:08,480 --> 00:08:09,760 Speaker 5: Well, I mean to that point here. 172 00:08:09,800 --> 00:08:11,720 Speaker 1: I mean, there's been a lot of talk about a 173 00:08:11,720 --> 00:08:14,600 Speaker 1: report that the Philadelphia Fed put out I think back 174 00:08:14,640 --> 00:08:18,239 Speaker 1: in twenty twenty three, specifically on this issue of owner 175 00:08:18,280 --> 00:08:20,840 Speaker 1: occupancy fraud. Basically the idea of putting on a mortgage 176 00:08:20,840 --> 00:08:23,239 Speaker 1: application that they're going to use something that's your primary 177 00:08:23,320 --> 00:08:26,360 Speaker 1: residence and get to get a lower mortgage rate, which 178 00:08:26,480 --> 00:08:28,600 Speaker 1: seems to be at the heart of the documents that 179 00:08:28,640 --> 00:08:31,920 Speaker 1: you posted. With regards to Lise of Cook, it was 180 00:08:31,920 --> 00:08:34,240 Speaker 1: a pretty high number, something like a third. And in 181 00:08:34,280 --> 00:08:38,000 Speaker 1: that report they specifically use the phrase that this type 182 00:08:38,000 --> 00:08:41,680 Speaker 1: of practice is quote broad based across the US. 183 00:08:41,760 --> 00:08:43,360 Speaker 5: Now that's back in twenty twenty three. 184 00:08:43,559 --> 00:08:47,560 Speaker 1: I am curious as to what measures the authorities, whether 185 00:08:47,600 --> 00:08:50,960 Speaker 1: your agency or other agencies, can take to actually reduce 186 00:08:51,480 --> 00:08:54,840 Speaker 1: that trend of owner occupancy discrepancies. 187 00:08:55,960 --> 00:08:58,760 Speaker 3: We are working very actively on it. I appreciate the question. 188 00:08:58,840 --> 00:09:01,000 Speaker 3: If you look at my Twitter feed, if you look 189 00:09:01,000 --> 00:09:05,040 Speaker 3: at my testimony, we have made mortgage fraud a huge priority. 190 00:09:04,600 --> 00:09:05,400 Speaker 2: Since the beginning. 191 00:09:05,520 --> 00:09:07,400 Speaker 3: I didn't know any of these people were committing mortgage 192 00:09:07,400 --> 00:09:09,640 Speaker 3: fraud when I came on the job. I mean I 193 00:09:09,640 --> 00:09:12,120 Speaker 3: had heard about, you know, different public reports and stuff 194 00:09:12,160 --> 00:09:14,680 Speaker 3: like that, but you know the amount of referrals. I 195 00:09:14,720 --> 00:09:17,040 Speaker 3: am shocked now that I'm in office with how much 196 00:09:17,080 --> 00:09:20,160 Speaker 3: mortgage fraud has gone on. So we have taken us 197 00:09:20,200 --> 00:09:23,040 Speaker 3: AW tech, taken on another network and let me finish, 198 00:09:23,440 --> 00:09:26,319 Speaker 3: hold on, let me finish. We were heard on another 199 00:09:26,400 --> 00:09:28,400 Speaker 3: network they said, well, can't you use AI to do this. 200 00:09:28,600 --> 00:09:31,800 Speaker 3: That's exactly what we did. We did months ago. We went, 201 00:09:32,160 --> 00:09:34,560 Speaker 3: we partnered with Palenteer at Fanny May. We held a 202 00:09:34,600 --> 00:09:38,760 Speaker 3: massive press event and we said, look, everybody beware, we 203 00:09:38,840 --> 00:09:40,840 Speaker 3: are looking for mortgage fraud. 204 00:09:41,000 --> 00:09:42,160 Speaker 2: We brought in Palenteer. 205 00:09:42,360 --> 00:09:47,280 Speaker 3: We have made tremendous efforts globally across the population, across 206 00:09:47,320 --> 00:09:48,920 Speaker 3: the data set, across the data. 207 00:09:48,679 --> 00:09:50,120 Speaker 2: Set alans from Fanny May. 208 00:09:50,559 --> 00:09:53,920 Speaker 3: And it's startling to me that because you have one 209 00:09:53,920 --> 00:09:56,560 Speaker 3: fed governor, you know, you try to make an excuse 210 00:09:56,600 --> 00:09:58,120 Speaker 3: for it instead of saying this is wrong. 211 00:09:58,520 --> 00:10:01,400 Speaker 2: This has prosecuted every day of the week for other people. 212 00:10:01,760 --> 00:10:04,520 Speaker 1: How many referrals have you made for some sort of 213 00:10:04,559 --> 00:10:05,640 Speaker 1: criminal investigation? 214 00:10:06,640 --> 00:10:08,280 Speaker 2: A lot, A lot I do. 215 00:10:08,440 --> 00:10:11,800 Speaker 3: Sometimes I do multiple per day and certainly multiple per week. 216 00:10:11,960 --> 00:10:14,720 Speaker 3: And my agency, along with the Inspector General in my 217 00:10:14,800 --> 00:10:17,920 Speaker 3: agency works hand in hand with the Department of Justice, 218 00:10:18,080 --> 00:10:20,680 Speaker 3: has done it under the Biden administration, did it under 219 00:10:20,720 --> 00:10:24,240 Speaker 3: the Obama administration, did it under the first Trump administration. 220 00:10:24,520 --> 00:10:27,640 Speaker 3: Mortgage fraud is prosecuted every day in this country. And 221 00:10:27,679 --> 00:10:29,360 Speaker 3: as long as I'm in the seat, We're going to 222 00:10:29,360 --> 00:10:32,560 Speaker 3: continue to eradicate fraudsters wherever we find them. 223 00:10:32,760 --> 00:10:34,920 Speaker 4: So it sounds like mortgage fraud is I don't want 224 00:10:34,920 --> 00:10:38,840 Speaker 4: to say common, but it's not uncommon either. Do you 225 00:10:38,880 --> 00:10:41,679 Speaker 4: think there's a plausible reason for your findings. People do 226 00:10:41,760 --> 00:10:44,320 Speaker 4: move and they don't always have a chance to update paperwork, 227 00:10:44,360 --> 00:10:47,720 Speaker 4: and so paperwork gets left behind or is out of date. 228 00:10:47,960 --> 00:10:49,560 Speaker 4: Do you think that that's a possibility here. 229 00:10:51,280 --> 00:10:53,080 Speaker 2: I'm not sure. I totally understand the question. 230 00:10:53,120 --> 00:10:55,880 Speaker 3: I mean, as a general matter, I believe that occupancy 231 00:10:55,880 --> 00:10:58,560 Speaker 3: fraud is wrong. I believe that when people sign a 232 00:10:58,559 --> 00:11:00,160 Speaker 3: piece of paper and they go to a bank and 233 00:11:00,160 --> 00:11:02,960 Speaker 3: they say that they represent to a bank that they're 234 00:11:03,000 --> 00:11:05,320 Speaker 3: going to do something and then they do something different, 235 00:11:05,360 --> 00:11:07,480 Speaker 3: I believe that that is bank fraud. I believe that 236 00:11:07,480 --> 00:11:09,920 Speaker 3: that potentially is wire fraud. And I believe that that 237 00:11:10,080 --> 00:11:12,720 Speaker 3: is in the case of mortgages, often mortgage frauds. So 238 00:11:13,760 --> 00:11:15,760 Speaker 3: we have rules in this country, and I just say this, 239 00:11:16,240 --> 00:11:18,760 Speaker 3: you know, what is the point of laws if they're 240 00:11:18,760 --> 00:11:20,760 Speaker 3: not going to be followed in this country? And if 241 00:11:20,760 --> 00:11:22,800 Speaker 3: people don't like the laws that are on the books, 242 00:11:22,840 --> 00:11:24,240 Speaker 3: we'll then go and change the law. 243 00:11:24,880 --> 00:11:26,600 Speaker 2: But if we have laws, and if I. 244 00:11:26,600 --> 00:11:29,439 Speaker 3: Promised, which I did, promise the Senate to uphold the 245 00:11:29,520 --> 00:11:31,880 Speaker 3: laws and follow the law and the statute. We have 246 00:11:31,960 --> 00:11:35,120 Speaker 3: to follow the law and the statute always. 247 00:11:35,040 --> 00:11:37,720 Speaker 4: Bill, I want to transition now to Fanny May and 248 00:11:37,760 --> 00:11:40,959 Speaker 4: Freddie Mack and the possibility of an IPO of these 249 00:11:41,280 --> 00:11:42,680 Speaker 4: government sponsored entities. 250 00:11:43,200 --> 00:11:44,000 Speaker 2: What assurances? 251 00:11:44,240 --> 00:11:45,959 Speaker 4: Well, first of all, can you give us a update 252 00:11:45,960 --> 00:11:47,840 Speaker 4: on where things stand with this potential IPO. 253 00:11:49,360 --> 00:11:52,880 Speaker 3: Well, the President decided many years ago to not sell 254 00:11:52,920 --> 00:11:54,840 Speaker 3: this asset. It was one of the best decisions that's 255 00:11:54,880 --> 00:11:58,160 Speaker 3: ever been done in my opinion from the presidency as 256 00:11:58,160 --> 00:12:00,640 Speaker 3: it relates to assets that the US government has had. 257 00:12:00,960 --> 00:12:03,720 Speaker 3: Why because people wanted to sell it to investors for 258 00:12:03,720 --> 00:12:06,240 Speaker 3: one billion, one hundred and fifty billion. I think that 259 00:12:06,360 --> 00:12:09,120 Speaker 3: number is north of a five hundred billion now that 260 00:12:09,200 --> 00:12:12,319 Speaker 3: these assets are worth. Since taking office, not just focusing 261 00:12:12,400 --> 00:12:15,440 Speaker 3: on mortgage fraud and other systemic issues like safety and 262 00:12:15,480 --> 00:12:18,720 Speaker 3: soundness mandates like we just spent the last ten minutes on, 263 00:12:19,640 --> 00:12:22,679 Speaker 3: but is also focused on driving value and treating Fanning 264 00:12:22,720 --> 00:12:25,920 Speaker 3: May and Freddie mac as if they're businesses, taking cost 265 00:12:25,960 --> 00:12:29,720 Speaker 3: out of these businesses that is redundant and unnecessary, and 266 00:12:29,880 --> 00:12:34,120 Speaker 3: also making sure that we are always thinking about how 267 00:12:34,160 --> 00:12:36,959 Speaker 3: do we within the confines of the law and in 268 00:12:37,040 --> 00:12:39,360 Speaker 3: the best interest in the American people. Run these things 269 00:12:39,360 --> 00:12:42,360 Speaker 3: as businesses, so if people aren't performing, we get rid 270 00:12:42,360 --> 00:12:44,559 Speaker 3: of them. We don't keep them around for years and 271 00:12:44,640 --> 00:12:47,280 Speaker 3: years and years and decades just because they're politically connected. 272 00:12:47,320 --> 00:12:49,920 Speaker 3: And so I think that this has enabled the Fanning 273 00:12:49,960 --> 00:12:53,400 Speaker 3: May and Freddie Mack's story to really, with President Trump's help, 274 00:12:54,360 --> 00:12:55,959 Speaker 3: unlock a lot of value for. 275 00:12:55,880 --> 00:12:56,640 Speaker 2: The American people. 276 00:12:56,640 --> 00:12:58,160 Speaker 3: And it will be very interesting to see what the 277 00:12:58,200 --> 00:12:59,840 Speaker 3: President decides to do in this. 278 00:13:00,320 --> 00:13:02,000 Speaker 1: Who with regards So I mean, I mean, I was 279 00:13:02,000 --> 00:13:03,719 Speaker 1: looking at the video that you guys put out. I 280 00:13:03,720 --> 00:13:06,160 Speaker 1: think it was came through the White House's account about 281 00:13:06,160 --> 00:13:09,200 Speaker 1: the Great American mortgage companies. So basically the combination of 282 00:13:09,240 --> 00:13:12,360 Speaker 1: these two. Also, what does appear to be a rebranding 283 00:13:12,440 --> 00:13:16,720 Speaker 1: of your agency in this US financial technology segment, which 284 00:13:16,720 --> 00:13:19,600 Speaker 1: I guess would sort of help with regards to the securitization. Now, 285 00:13:19,640 --> 00:13:21,840 Speaker 1: is what is the idea all of that bill would 286 00:13:21,840 --> 00:13:24,240 Speaker 1: be under the same umbrella, and I assume that you 287 00:13:24,280 --> 00:13:27,439 Speaker 1: would be at the helm Well. 288 00:13:27,240 --> 00:13:27,680 Speaker 2: We'll see. 289 00:13:27,720 --> 00:13:30,319 Speaker 3: I mean, you know, these companies are in conservatorship, as 290 00:13:30,320 --> 00:13:33,560 Speaker 3: you know, which basically means that the president is in 291 00:13:33,679 --> 00:13:37,040 Speaker 3: charge of these companies, and there was a Supreme Court 292 00:13:37,120 --> 00:13:39,840 Speaker 3: ruling which made that very clear. I would say that 293 00:13:39,880 --> 00:13:41,800 Speaker 3: any and all options around the table. One of the 294 00:13:41,800 --> 00:13:44,400 Speaker 3: things that I've been focused on, Romaine has been since 295 00:13:44,440 --> 00:13:45,440 Speaker 3: getting in the seat, is. 296 00:13:45,440 --> 00:13:46,559 Speaker 2: On creating value. 297 00:13:46,640 --> 00:13:49,120 Speaker 3: Now, what the President ultimately decides to do with that 298 00:13:49,200 --> 00:13:51,480 Speaker 3: value is entirely up to him. But we had a 299 00:13:51,480 --> 00:13:55,040 Speaker 3: thing called Common Securitization Solutions. Nobody understood what this thing was, 300 00:13:55,320 --> 00:13:57,640 Speaker 3: you know, generally out there, and so we decided to 301 00:13:57,640 --> 00:14:00,440 Speaker 3: rebrand it as US Fintech and really focus on what 302 00:14:00,480 --> 00:14:03,360 Speaker 3: it is, which is financial technology. I believe this business 303 00:14:03,400 --> 00:14:06,920 Speaker 3: is worth billions and billions of dollars. It was previously neglected. 304 00:14:06,920 --> 00:14:08,840 Speaker 2: In my view. Fanny May and Freddie. 305 00:14:08,480 --> 00:14:11,520 Speaker 3: Mack have put almost a billion dollars into this platform, 306 00:14:11,800 --> 00:14:14,559 Speaker 3: and so we're unlocking value there. And then with Fanny 307 00:14:14,600 --> 00:14:16,560 Speaker 3: and Freddy, we'll see, we'll see if the name has changed, 308 00:14:16,600 --> 00:14:17,720 Speaker 3: we'll see if these things are there. 309 00:14:18,000 --> 00:14:19,880 Speaker 2: But we're trying to aspire to a new tomorrow. 310 00:14:19,960 --> 00:14:21,800 Speaker 3: You know, Fanny May and Freddie Mack were these ones 311 00:14:22,200 --> 00:14:25,800 Speaker 3: nearly bankrupt assets or bankrupt assets, many people would say, 312 00:14:26,280 --> 00:14:28,400 Speaker 3: And we're trying to revitalize those These should be great 313 00:14:28,440 --> 00:14:31,360 Speaker 3: American icons. We are the greatest economy in the world, 314 00:14:31,800 --> 00:14:34,480 Speaker 3: and we have a great president, and we are going 315 00:14:34,560 --> 00:14:38,160 Speaker 3: to use these assets to benefit the American people and 316 00:14:38,200 --> 00:14:40,120 Speaker 3: get the most value out of these assets that we 317 00:14:40,160 --> 00:14:40,680 Speaker 3: can do. 318 00:14:40,760 --> 00:14:43,000 Speaker 1: You have any sense of a timetable of maybe when 319 00:14:43,040 --> 00:14:44,960 Speaker 1: we'll that will either get done or at least we'll 320 00:14:44,960 --> 00:14:46,720 Speaker 1: get a little bit more guidance, the public will get 321 00:14:46,720 --> 00:14:48,080 Speaker 1: more guidance, and when that will be. 322 00:14:48,040 --> 00:14:51,560 Speaker 3: Done, That'll entirely be up to the president, the only 323 00:14:51,600 --> 00:14:53,600 Speaker 3: one who knows that it is in his brain, and 324 00:14:53,800 --> 00:14:56,960 Speaker 3: so I'll let him decide on timing, of course, but 325 00:14:57,000 --> 00:14:59,600 Speaker 3: I would say that you know, the president's very interested 326 00:14:59,640 --> 00:15:01,080 Speaker 3: in this is and it's very nice to have a 327 00:15:01,120 --> 00:15:04,080 Speaker 3: president who cares about Fannie May and Freddie mac all. 328 00:15:04,040 --> 00:15:07,000 Speaker 4: Right, we thank you. Federal Housing Finance Agency Director Bill 329 00:15:07,040 --> 00:15:09,760 Speaker 4: Polty joining us and reminder that we are once again 330 00:15:09,800 --> 00:15:12,600 Speaker 4: out to Fed Governor Lisa Cook for comment, and so 331 00:15:12,680 --> 00:15:15,520 Speaker 4: far she has declined our requests for an interview.