Watch CNBC's full interview with FHFA Director Bill Pulte

Mortgage Fraud Allegations - The Federal Housing Finance Agency (FHFA) is investigating alleged mortgage fraud, emphasizing its duty to ensure the safety and soundness of the mortgage market [7][9] - The investigation involves a Federal Reserve governor, raising questions about potential political weaponization and independence of the Fed [5][10] - The agency received a tip that initiated the investigation, but the source of the tip is not being disclosed to protect sources and methods [11][13] - The investigation is based on public documents [12] Legal and Political Dimensions - The investigation has sparked debate about the legal meaning of "cause" for potential termination and whether due process is being followed [3][17] - There are concerns about the appearance of political influence, given the involvement of individuals with partisan affiliations [5][6] - The Department of Justice (DOJ) is also investigating the matter [21] - The individual under investigation has sued the president and the Fed board [18][34] Federal Reserve and Jay Powell - Questions are raised about the Federal Reserve's independence and Chairman Jerome Powell's handling of the situation [5][33] - There is speculation about potential motivations and actions of Jay Powell [36][37]