WASHINGTON, Nov. 3 (Reuters) — The acting inspector general of the U.S. Federal Housing Finance Agency (FHFA), Joe Allen, is being removed from his position, according to four people familiar with the development. The shake-up comes as the housing regulator becomes increasingly entangled in President Donald Trump’s efforts to target perceived political opponents.
Allen’s ouster follows the rise of FHFA Director Bill Pulte, who has become a vocal supporter of the Trump administration. Nearly two dozen federal watchdogs responsible for investigating waste, fraud, and abuse have been dismissed or reassigned under the current administration, which has also eliminated funding for the body overseeing inspector general offices.
The FHFA did not respond to requests for comment. The individuals who confirmed the move spoke anonymously because they were not authorized to discuss the agency’s internal decisions.
Established after the 2008 financial crisis, the FHFA typically operates with a low public profile. However, under Pulte’s leadership, the agency has launched a public mortgage-fraud hotline and issued criminal referrals against several Trump critics, including New York Attorney General Letitia James.
Lindsey Halligan, the interim U.S. attorney for the Eastern District of Virginia appointed by Trump, subsequently indicted James. According to sources, Allen received termination notice from the White House after providing constitutionally required information to prosecutors in Halligan’s office. One source said the material could be relevant during discovery.
Reuters previously reported that Pulte has bypassed the agency’s Office of Inspector General in pursuing politically charged cases.
Allen reported to work on Monday, the sources said. It remains unclear whether he is still serving in his concurrent role as chief counsel to the inspector general’s office.
Allen, who could not be reached for comment, became acting inspector general in April 2025, according to archived FHFA records. As of Monday, the FHFA inspector general website listed the post as vacant, though the timing of the update is unknown. Web archives from late September showed Allen still in the role.
Reacting to the development, Democratic Senator Elizabeth Warren of Massachusetts said, “Director Pulte has some answering to do.”
Before joining the FHFA’s watchdog office, Allen spent four decades at the U.S. Justice Department, including roles as a federal prosecutor and senior official at the Bureau of Alcohol, Tobacco, Firearms and Explosives.
James, who last year won a $450 million civil fraud judgment against Trump, pleaded not guilty last month to charges that she falsified mortgage documents — charges that arose after Pulte urged the Justice Department to investigate her. Pulte has also recently boasted of firing dozens of staff at Fannie Mae.
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