Trump: Praised FHFA director William J. Pulte, urging him to "keep moving forward" and not let "radical left weaklings" stop his efforts at Fannie Mae and Freddie Mac

Trump: Praised FHFA director William J. Pulte, urging him to "keep moving forward" and not let "radical left weaklings" stop his efforts at Fannie Mae and Freddie Mac

In a recent tweet, former President Donald Trump praised Federal Housing Finance Agency (FHFA) Director William J. Pulte, urging him to continue his efforts at Fannie Mae and Freddie Mac without letting "radical left weaklings" deter his progress. Pulte, under Trump's administration, has been making significant changes to the mortgage lending landscape.

One of Pulte's latest directives is to integrate cryptocurrencies like bitcoin into mortgage loan assessments. This move, which aims to expand the pool of eligible homebuyers, comes with inherent risks. Cryptocurrencies are known for their volatility, which could expose lenders to significant financial liability [1]. The FHFA has directed Fannie Mae and Freddie Mac to submit proposals for considering cryptocurrency as an asset in mortgage risk assessments without converting it to U.S. dollars.

Additionally, Pulte has announced that Fannie Mae and Freddie Mac will now allow lenders to use VantageScore 4.0 alongside FICO credit scores. This change, which was mandated by the bipartisan Credit Score Competition Act of 2018, aims to increase competition and potentially lower costs for consumers [2]. The new scoring system includes rent, utilities, and telecom payments, which are not considered in FICO scores.

These reforms, while aimed at increasing accessibility and competition, come with their own set of challenges. Critics worry that the inclusion of cryptocurrencies could lead to a new wave of financial instability, reminiscent of the subprime mortgage crisis. Industry organizations have called for safeguards, such as a haircut model or the use of stablecoins, to mitigate these risks.

Trump's support for Pulte's efforts highlights the administration's push to make homeownership more accessible and to challenge traditional financial systems. However, the successful implementation of these reforms will depend on the ability to manage the associated risks and to ensure that the changes benefit consumers without compromising the stability of the mortgage industry.

References:
[1] https://www.thestreet.com/real-estate/white-house-advisor-orders-fannie-mae-to-add-bitcoin-to-mortgage-loan-review
[2] https://www.ocregister.com/2025/07/17/fannie-mae-freddie-mac-adding-a-dose-of-competition-to-fico-credit-scoring/