FHFA's Pulte plans pricing changes for builders, lenders

Large construction companies and their lender partners could see imminent changes in Fannie Mae and Freddie Mac's terms, according to Federal Housing Finance Agency Director Bill Pulte's social media posts.

Pulte confirmed follow-through on plans to track the government-sponsored enterprises' builder-related business in posts on X, noting that he has reviewed "pricing and terms, based on volume, performance and individual builder's efforts to work collaboratively."

The signals come amid ongoing efforts by the Trump administration to get large builders to make a greater number of more affordable units available to the market with recent escalation to antitrust investigations in the construction industry.

At least two large builders have been involved in discussions around a proposed rent-to-own strategy, according to a Bloomberg report citing anonymous sources. A day after the story was published, Pulte said in an X post that the rumored "Trump Homes" plan was "not a priority," adding that the idea was "likely leaked from a big builder who wants to take the accountability off of themselves."

Proposals from the lending industry aimed at allowing builders to produce more units affordable to consumers have included potentially adapting a strategy used in the rural housing market to ease securitization of one-time close construction loans.

An interest in leveling the playing field?

Pulte, who also uses the name US Federal Housing to refer to the agency traditionally known as FHFA, indicated he's been hearing concerns from less sizable builders, suggesting he might want to take action to address their concerns.

"Especially in the last few days, I have learned how increasingly upset many Small to Medium Builders and their trade groups are with what they believe are unfair advantages that Big Builders have, both at Fannie and Freddie and otherwise," he said in an X post.

In response to social media questions about whether he would act, Pulte said multiple options were under consideration.

"We are working on some things, which we will share at the right time," he wrote.

Pulte, the grandson of PulteGroup founder William J. Pulte, has used his closely watched social media posts to raise concerns about large builders' growing market share, which he has estimated at roughly half of the market or more, depending on the source.

Other signals around the FHFA's and GSEs' builder focus

An executive with a builder background has been highly placed at one GSE. Brandon Hamara, a former Tri-Point Homes executive, became one of Fannie Mae's new co-presidents in a management shakeup that followed the departure of its CEO.

Pulte also has been critical of builders' rate buydowns putting too much upward pressure on home prices. But President Trump has indicated more recently he wants high home values to assist in current and future owners' wealth building and focus more on lowering rates.

New construction has played a relatively larger role in the housing market ever since many borrowers received record-low rates available during the pandemic and became more reluctant to move, making resale inventory less accessible.

Fannie and Freddie's conservator also recently told the Wall Street Journal that he also has concerns about them investing funds that could be used elsewhere in stock buybacks, in line with something President Trump has been spoken out against in another context. 

Companies that utilize stock repurchases have defended them as actions that help support operations.