Speculation that she might resign first arose after Danielle McCoy, the general counsel of the agency that oversees Fannie and Freddie—FHFA—resigned. She abruptly resigned amidst escalating pressure after questions about the unauthorized access of sensitive mortgage documents. Her resignation is the largest and most significant development in the long-running investigation so far. It raises troubling questions about the agency’s transparency and ethical standards.
McCoy’s exit comes amid accusations that she accessed confidential mortgage data without authorization. The FHFA, which oversees government-sponsored entities such as Fannie Mae and Freddie Mac, has faced scrutiny over the handling of these sensitive files. As general counsel, McCoy was a key figure in responding to legal and ethical controversies that have roiled the agency, making her resignation especially acute.
In the wake of McCoy’s resignation, a spokesperson for the FHFA defended the agency’s integrity. They stated, “This is more Fake News from people who are trying to impede the criminal justice system.” This comment underscores the hypercharged environment that has surrounded the investigation. It would imply that the agency is retreating to a fetal position in the face of public outcry.
This probe into the illegal tampering of mortgage records has already raised eyebrows among some lawmakers and advocacy groups, but the implication of this fine goes much deeper. Much more has been said about the potential negative impacts for consumers and the general lack of transparency this will bring to the housing finance system. How well FHFA handles these concerns will likely shape the public’s confidence in the agency for years to come.
As the FHFA moves through this ethical crisis, it is unclear who will be filling McCoy’s shoes. Selecting a new general counsel will be critical for the agency to reestablish its credibility. This appointment will keep a commitment to ethical oversight obliquely.