Senate confirms Jay Clayton as DNI, ending dual leadership role for FHFA’s Bill Pulte

The Senate confirmed U.S. District Attorney Jay Clayton on Tuesday to lead the Office of the Director of National Intelligence (DNI), formally ending Federal Housing Finance Agency (FHFA) Director Bill Pulte’s brief stint as acting intelligence chief.

The 51-47 vote along party lines makes Clayton the director of national intelligence in President Donald Trump’s second term. Clayton, a longtime ally of the president, lost Democratic support during his confirmation hearing after he refused to affirm that Joe Biden won the 2020 election, The New York Times reported.

Clayton takes over as DNI chief from Pulte, who has been serving in the role since early June while simultaneously overseeing the FHFA — the regulator and conservator of Fannie Mae and Freddie Mac.

Pulte has reportedly used the role to rapidly shrink the intelligence office, publicly claiming on X this week that he executed a “5th and Near Final Round of TERMINATIONS” that totaled a 30% staff reduction during his short tenure, according to the Times.

Current and former officials told the Times that it’s unclear how many of these cuts have actually occurred. Still, Pulte’s aggressive downsizing and online persona have alarmed many in the intelligence community and in housing policy circles, where FHFA is central to the functioning of the mortgage market.

Some Democrats privately told the Times they are relieved to see Pulte leave the intelligence post, even as they opposed Clayton’s confirmation.

Sen. Mark Warner (Va.), the top Democrat on the Senate Intelligence Committee, said in a statement given to the Times that he has “serious reservations” about whether Clayton will stand up to political pressure but hopes he will provide “steadier leadership than [the intelligence community] has received in recent months.”

Days after Trump appointed Pulte to the temporary DNI post, the president said the FHFA chief would not be nominated to serve permanently.

The appointment had drawn swift criticism due to Pulte’s lack of a traditional military or intelligence background. The DNI coordinates about 20 federal agencies and advises senior officials on threats like terrorism, espionage, cyberattacks and foreign influence operations.

About a week after Pulte’s appointment, Clayton was nominated for the permanent role. Clayton is a former chairman of the Securities and Exchange Commission (SEC) and previously led law firm Sullivan & Cromwell.

Democrats raise alarms over FHFA leadership

Separately, two key Senate Democrats pressed Pulte earlier in the week to prove he’s still performing his FHFA responsibilities — or to step down from the top housing regulator role, Bloomberg reported.

In a letter written July 26, Sen. Elizabeth Warren (D-Mass.) and Senate Minority Leader Chuck Schumer (D-N.Y.) urged Pulte to relinquish his FHFA post “if you are unwilling or unable to dedicate yourself fully to the role for which you were confirmed and help to lower housing costs for Americans,” according to Bloomberg.

The letter highlights long-simmering concerns that Pulte’s focus on his intelligence assignment and his online presence have distracted from FHFA’s core mission. The agency oversees the government-sponsored enterprises (GSEs) and their key roles in providing liquidity to the mortgage market, and is tasked with ensuring safety and soundness at Fannie Mae and Freddie Mac while advancing affordability goals for renters and homeowners.

The senators’ comments also suggest heightened oversight risk for FHFA and its director, at a time when policymakers are weighing how to address high mortgage rates, low levels of for-sale inventory and persistent affordability pressures.

This article was written by Neil Pierson with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.