Key takeaways:

• Bill Pulte failed to file his Fannie Mae Form 3 within the 10-day SEC deadline.
• He filed on time for Freddie Mac but missed the Fannie Mae report.
• The SEC demands new officers submit Form 3 even with zero shares.
• This disclosure error mirrors the one he attacked in others’ filings.
• Experts say this oversight clearly violates securities rules.

Bill Pulte, once called an “attack dog” by President Trump’s foes, now faces his own paperwork scandal. He joined the boards of Fannie Mae and Freddie Mac in March. Yet he filed only one required SEC form. His slip raises big questions and even legal trouble.

How the Disclosure Error Happened

In early March, Bill Pulte became chairman of both Fannie Mae and Freddie Mac. These agencies back nearly half of all U.S. home loans. Because they sit under the Federal Housing Finance Agency, his role carried strict rules. New officers must file a Form 3 with the U.S. Securities and Exchange Commission within ten days. They must do this even if they hold no shares.

Pulte did submit his Form 3 on time for Freddie Mac. However, he never filed the same form for Fannie Mae. As a result, he broke the very rule he used to attack others. This disclosure error has experts calling for explanations.

Why SEC Rules Matter

The SEC enforces rules to keep markets fair. Form 3 helps the agency track insider trading and conflicts of interest. It reveals if leaders own stock or have ties that could sway decisions. Without it, the public and regulators stay in the dark.

Moreover, timely filings build trust. When top officers miss deadlines, it raises concern about other mistakes. For instance, if someone overlooks a simple disclosure rule, they might also miss bigger issues. That is why many see Pulte’s slip as more than a clerical error.

Pulte’s Role at Fannie Mae and Freddie Mac

Both Fannie Mae and Freddie Mac service nearly half of American mortgages. They buy home loans from banks and package them into securities. The FHFA, led by Pulte’s agency, oversees their work.

As board chairman, Pulte gains influence over housing finance. He can shape policy that affects millions of homeowners. His position carries weight in Washington and on Wall Street. Therefore, full transparency is crucial.

In contrast, his failure to file one simple form invites skepticism. It leaves the public guessing about his holdings or conflicts. Even if he owns no shares, the SEC rule clearly applies. Joan Heminway, a law professor and securities expert, called the requirement “a no-brainer.”

Past Paperwork Mistakes and Controversies

This is not Pulte’s first run-in with paperwork blunders. His wife donated half a million dollars to a Trump super-PAC after January 6. She used a Delaware shell company for the gift. Later, the Federal Election Commission investigated whether she broke donation rules.

The FEC found no illegal act. Yet it did note a form error. She listed the money as coming from an LLC, not a family member. That mistake echoes Pulte’s current SEC slip.

In addition, at least three Trump cabinet members once claimed different mortgages on the same primary home. Pulte himself has publicly criticized Federal Reserve governor Lisa Cook for mortgage fraud. Cook, appointed by President Biden, faces a federal probe but no charges yet. New documents hint her filing issue may have been a clerical error, not fraud.

Now Pulte finds himself on the receiving end of similar claims. His critics say this shows double standards. He demanded strict scrutiny for others yet missed his own deadline.

Expert Views on the Disclosure Error

Legal experts stress that SEC rules are clear. New officers must file Form 3 within ten days, even with zero shares. Otherwise, they break securities law. Such oversights can lead to fines or other penalties.

Moreover, consistent filings help prevent insider trading. If someone holds secret shares, they could profit unfairly. Timely disclosures expose any conflicts. As Heminway noted, “This is clearly required.”

Some argue Pulte’s delay was an honest mistake. They point out the complexity of SEC paperwork. However, others say his public attacks on rivals demand higher standards. If he expects perfect filings from others, he should meet those standards himself.

In response to questions, Pulte’s office said they plan to “cure any filing defects promptly.” Yet they offered no timeline for the missing Fannie Mae Form 3. Meanwhile, watchdogs and lawmakers may press for answers.

What This Means for Homeowners and Investors

For everyday people, this story may seem distant. Yet Fannie Mae and Freddie Mac influence mortgage rates and lending rules. Their leaders shape how easy or hard it is to buy a home.

If Pulte’s disclosure error leads to deeper probes, it could spark reforms. Lawmakers might tighten filing rules or add new checks. That could boost trust in housing finance. Or it could slow down decisions at Fannie and Freddie while investigations run.

Either way, this episode highlights why transparency matters. Even high-profile figures must follow the rules. Otherwise, confidence in the system erodes.

In the end, Bill Pulte’s own disclosure error offers a cautionary tale. It shows that no one sits above clear, simple filing requirements. And it underscores why watchdogs watch so closely.

Frequently Asked Questions

What is a Form 3?

Form 3 is an SEC filing for new officers, directors, or major shareholders. It discloses ownership and must arrive within ten days of appointment.

Why does a disclosure error matter?

A missed disclosure can hide conflicts of interest or insider trading. It also undermines trust in financial leaders and public agencies.

Could Pulte face penalties?

Yes. If the SEC deems the delay intentional or serious, fines or other actions may follow. The agency reviews each case based on facts.

How might this affect mortgage borrowers?

If investigations slow Fannie Mae’s board, policy changes or loan programs could stall. However, day-to-day lending is likely to continue without major disruption.