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The fired members of the Federal Housing Finance Agency's internal watchdog were looking into complaints that Director Bill Pulte and his team improperly pulled records of Democratic officials.
Watchdogs at the government-sponsored home loan company popularly known as Fannie Mae were fired as they investigated whether a close ally of President Donald Trump improperly accessed mortgage files of Democratic officials targeted for political retribution by the president, the Wall Street Journal reported Tuesday.
People familiar with the matter told the Journal that the fired ethics team members were looking into complaints that Federal Housing Finance Agency (FHFA) Director Bill Pulte and his team improperly directed staff to access mortgage records of New York Attorney General Letitia James and other Democratic officials.
The anonymous officials said that ethics team leader Suzanne Libby and her staffers were fired shortly after Fannie Mae management ordered them to stop investigating a company executive close to Pulte, effectively clearing out the company's internal watchdogs.
This, days after Reuters reported that Joe Allen, the FHFA's acting inspector-general, was being removed from his position. Three unnamed sources told Reuters that Allen's removal came as he was preparing to notify congressional lawmakers that the FHFA was not cooperating with his office.
Pulte has donated hundreds of thousands of dollars to a pro-Trump super political action committee and has been described as the president's "attack dog" after his team pulled property records of Democrats including James, Sen. Adam Schiff of California, and Federal Reserve Gov. Lisa Cook.
James successfully sued Trump and his business organization for fraud. Schiff was the lead manager in the first of the president's two House impeachments.
Interim US Attorney for the Eastern District of Virginia Lindsey Halligan—who was hand-picked by Trump—indicted James after her predecessor, Erik Seibert, refused to do so, citing a lack of evidence. On Tuesday, the Campaign for Accountability, a watchdog group, filed a complaint with the bar associations of Florida and Virginia accusing Halligan of possible ethics violations in connection with the charges against James and former FBI Director James Comey, who oversaw a probe into alleged pro-Trump interference in the 2016 presidential election by Russia.
Pulte said last month that he fired dozens of Fannie Mae staffers as part of the Trump administration's attack on diversity, equity, and inclusion initiatives. On Monday, the company fired at least 200 additional employees, according to the Washington Post.
As the Post noted:
Pulte’s actions and unpredictable policymaking style have also sown uncertainty and undermined confidence in him from those across the housing finance industry at a crucial moment. The Trump administration is looking to take Fannie and Freddie [Mac]—under government control since the 2008 housing crisis—public through what it says would be the largest public offering in history. Pulling that off would require a full-throated endorsement from major banks, investors, lenders, and the financial markets. But multiple industry figures and housing finance experts say Pulte’s time in office, and the recent firings of top Fannie officials, is eroding their faith in the firms’ futures.
If Pulte or others are found to have improperly accessed mortgage records, they could possibly face charges under the Computer Fraud and Abuse Act, which prohibits intentionally accessing electronic files without authorization or exceeding authorized access, especially for protected computers including those handling financial data at Fannie Mae.
News of the ethics team firings came as Fannie Mae is under scrutiny for announcing its lifting of the 620 minimum credit score requirement for borrowers seeking loans that will be sold to the company, and as Trump and Pulte float the possibility of 50-year residential mortgages. Critics point to the 2008-09 financial crash—caused largely by a real estate bubble fueled by risky lending practices—and the possibility of lifelong indebtedness resulting from such lengthy loans as cause for alarm.
Pulte is an heir to the fortune amassed by his grandfather, Pulte Homes founder William J. Pulte. The company, now known as PulteGroup, is currently the nation's third-largest homebuilder.
"The question this drastic firing raises is: Are there even worse ethics problems Bondi is trying to hide?" said one watchdog campaigner.
Further escalating concerns over U.S. Attorney General Pam Bondi's control of the Department of Justice, Joseph Tirrell announced Monday on a professional networking website that he was fired as director of the Departmental Ethics Office.
Tirrell shared Bondi's July 11 memo, which misspells his first name and provides no explanation for his dismissal from the DOJ. It states that "pursuant to Article II of the United States Constitution and the laws of the United States, your employment with the Department of Justice is hereby terminated, and you are removed from federal service effective immediately."
Democracy Docket reporter Jacob Knutson noted that "Trump officials have repeatedly referenced Article II to make broad assertions of presidential authority and to justify dismissing federal workers who traditionally have been shielded by civil service protections."
Tirrell wrote in his LinkedIn post that "I led a small, dedicated team of professionals and coordinated the work of some 30 other full-time ethics officials, attorneys, paralegals, and other specialists across the Department of Justice, ensuring that the 117,000 department employees were properly advised on and supported in how to follow the federal employee ethics rules."
Bloomberg had reported on Tirrell's ouster Sunday, and both he and the DOJ had declined to comment. The outlet pointed out that "his portfolio included reviewing and approving financial disclosures, recusals, waivers to conflicts of interest, and advice on travel and gifts for Bondi, Deputy Attorney General Todd Blanche, FBI Director Kash Patel, and other DOJ leaders."
Jon Golinger, democracy advocate at the government watchdog Public Citizen, said in a Monday statement that "Bondi's sudden firing of the DOJ ethics adviser shines a bright spotlight back on her own glaring ethical conflicts and how she's handled major DOJ decisions involving her former clients like Qatar and Pfizer."
According to Golinger, "The question this drastic firing raises is: Are there even worse ethics problems Bondi is trying to hide?"
As Bloomberg also detailed:
Tirrell's removal is separate—but potentially related—to the roughly 20 employees involved in Special Counsel Jack Smith's investigations, according to numerous media reports, were also fired July 11.
Tirrell advised Smith's office on ethics matters during his criminal prosecutions of President Donald Trump, said the sources, who spoke on condition of anonymity to share a sensitive personnel matter. That includes Tirrell approving Smith's receipt of $140,000 in pro bono legal fees from Covington & Burling that he disclosed upon concluding his investigation.
The Not Above the Law coalition's co-chairs—Brett Edkins of Stand Up America, Praveen Fernandes of the Constitutional Accountability Center, Lisa Gilbert of Public Citizen, and Kelsey Herbert of MoveOn—said in a Monday statement that "by firing her ethics chief, Pam Bondi is making it clear she answers to Trump and no one else."
"This is the latest move in an alarming pattern of dismantling oversight and erasing accountability from the Department of Justice. Bondi is purging anyone who dares act as a check on executive power to pave the way for more corruption and abuse," the co-chairs continued. "Bondi may be the one who made this latest call, but this administration's culture of corruption starts at the top."
They added that "whether it's using the presidential bully pulpit to raise allies' stock prices, giving special access to Trump meme coin investors, or firing 17 agency inspectors general to stymie government oversight, Trump seems to have perfected the art of using public office for personal profit, and he, Bondi, and everyone else are ensuring that nobody dares lift a finger to stop them."
Under Trump and Bondi, thousands of employees have left the DOJ. CBS News reported last month that the department lost 4,000 workers as part of the Trump administration's "fork in the road" deferred resignation program, and Reuters revealed Monday that 69 of the roughly 110 lawyers in the Federal Programs Branch—which defends the president's policies in court—have quit the unit or announced plans to resign since his November election.
Bondi has been accused of "serious professional misconduct that threatens the rule of law and the administration of justice," including with her day-one memo directing all DOJ employees to "zealously defend" Trump's policies, and has recently faced sharp criticism for the department's handling of documents related to the late financier and convicted sex offender Jeffrey Epstein.
In a clear sign of congressional Republicans' unwillingness to hold the Trump administration accountable, GOP members of the U.S. House Rules Committee late Monday blocked an amendment that would have forced the DOJ to release the full Epstein files to the public.
"No one wants to defend Trump's bullshit policies before the courts," said one critic of the president.
Reuters reported Monday that nearly two-thirds of attorneys in the section of the U.S. Department of Justice charged with defending President Donald Trump's policy have voluntarily left the unit or announced plans to resign since his November election.
The list of "69 of the roughly 110 lawyers in the Federal Programs Branch" who have ditched the unit or plan to leave was compiled by former DOJ attorneys. Reuters was able to confirm the departure of all but four names based on court records and LinkedIn accounts. The news agency also spoke with four former members of the unit and three others familiar with the resignations.
The sources—all granted anonymity by the news outlet—described the degree of turnover as highly unusual and said that some members of the unit "had grown demoralized and exhausted defending an onslaught of lawsuits against Trump's administration," Reuters detailed, summarizing their comments. They "cited a punishing workload and the need to defend policies that some felt were not legally justifiable," along with fears that "they would be pressured to misrepresent facts or legal issues in court."
According to the news agency, worries about retaliation grew after DOJ leadership fired Erez Reuveni, a former supervisor in the Office of Immigration Litigation, another Civil Division unit, over the Kilmar Ábrego García case. Reuveni then filed a whistleblower complaint that has generated concern about Emil Bove, now nominated by Trump to serve as a federal appellate judge.
"Many of these people came to work at Federal Programs to defend aspects of our constitutional system," one lawyer who left the unit during Trump's second term told Reuters. "How could they participate in the project of tearing it down?"
Mark Zaid, who has a long record of facing attorneys from the Federal Programs Branch in cases against the U.S. government, said on the social media platform Bluesky that they were "usually top-notch professional, nonpartisan lawyers. Shameful what has happened."
No one wants to defend Trump's bullshit policies before the courts. www.reuters.com/legal/litiga...
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— emptywheel (@emptywheel.bsky.social) July 14, 2025 at 7:31 AM
Also sharing the report on Bluesky, Mark Joseph Stern, who covers the courts for Slate, wrote: "Really good piece—but the numbers don't include those who left shortly BEFORE Trump's reelection, when it seemed alarmingly possible, to ensure that they never had to defend lawless, fascist policies in court, even for a day. I understand that group is not small."
"Lawyers who have remained at Federal Programs to continue defending Trump's policies are a disgrace to the legal profession and will carry the immense shame of complicity with authoritarianism for the rest of their lives," he added.
Jonathan Cohn, political director at the group Progressive Mass, similarly said on social media that "the others would resign too if they had any professional or personal ethics."
DOJ lawyers have had to defend Trump's anti-immigrant agenda—from mass deportations that led to hundreds of men, including Ábrego García, being sent to a Salvadoran megaprison to Trump's attack on birthright citizenship, which recently led to a U.S. Supreme Court ruling that limits the power of federal judges. They also have had to defend the administration's attempts to slash government jobs and spending, and the president's targeting of major law firms, which, so far, courts have shot down.
The DOJ told Reuters that the department "will continue to defend the president's agenda" and is hiring to maintain staffing levels from the Biden administration, while a White House spokesperson, Harrison Fields, lashed out at critics of Trump. He said that "any sanctimonious career bureaucrat expressing faux outrage over the president's policies while sitting idly by during the rank weaponization by the previous administration has no grounds to stand on."
Since Trump-appointed Pam Bondi became attorney general, she has faced widespread accusations of "serious professional misconduct that threatens the rule of law and the administration of justice," as over 70 legal experts and three groups put it in a June ethics complaint sent to the Florida Bar.
"The gravamen of this complaint is that Ms. Bondi, personally and through her senior management, has sought to compel Department of Justice lawyers to violate their ethical obligations under the guise of 'zealous advocacy' as announced in her memorandum to all department employees, issued on her first day in office, threatening employees with discipline and possible termination for falling short," the filing states.
Bondi has also faced intense scrutiny in recent days over the DOJ's handling of documents related to the late financier and convicted sex offender Jeffrey Epstein. Congressman Ro Khanna (D-Calif.) announced Saturday that this week he plans to introduce a measure "to force a vote demanding the FULL Epstein files be released to the public."