According to a published report, the Trump administration has removed Joe Allen, Acting Inspector General at the Federal Housing Finance Agency (FHFA), though the agency’s website has no updated information on his status.
Allen received notice of his termination from the White House after he made efforts to provide key information to prosecutors in that office, according to four sources, Reuters reported. The information he turned over was constitutionally required, two of them said, while a third described it as being potentially relevant in discovery.
His ouster also came about as he was preparing to send a letter to Congress notifying lawmakers that the FHFA was not cooperating with the Inspector General’s office, three of the sources said. These individuals said the FHFA Director would typically have been notified of such a letter. Reuters was unable to independently determine whether FHFA Director Bill Pulte was informed.
Background & Industry Response
Allen was a 40-year veteran at the Justice Department, where he held various roles from a federal prosecutor to senior legal positions with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, before becoming FHFA’s Acting Inspector General in April 2025. He had reported to work on Monday, according to the sources. However, the FHFA’s Office of Inspector General listed the position as “currently vacant.”
The FHFA’s Inspector General is responsible for investigating fraud, waste, and abuse within the agency and the government-sponsored enterprises (GSEs).
The move has intensified concerns about the politicization of America’s mortgage watchdogs and the potential ripple effects for global housing finance, according to Reuters.
Ben Mizes, President and Co-Founder of Clever Offers, called the removal “a red-flag raising for oversight over housing finance. As an investor and broker, I believe that some level of consistency in mortgage regulation is critical. And political meddling, or the appearance of it, can undermine investor confidence in agencies that insure the security of mortgage-backed assets.”
Another source told Reuters that the move could have an impact on pending legal proceedings. Allen had also been preparing to alert Congress that the FHFA was refusing to cooperate with his office, but was terminated before he could do so, according to individuals familiar with the matter.
Nearly two dozen inspectors general have been removed or sidelined during Trump’s second term. The White House has also restricted the budget of the council overseeing these watchdogs.
