Skip to main content

FHFA OIG Report Criticizes Watt on Sexual Harassment Issue

Feb 18, 2019
The Federal Housing Finance Agency Office of the Inspector General (FHFA OIG) has issued a report stating that former Director Mel Watt misused his position to force a romantic relationship on a female colleague

The Federal Housing Finance Agency Office of the Inspector General (FHFA OIG) has issued a report stating that former Director Mel Watt misused his position to force a romantic relationship on a female colleague.
 
Watt, who left the Director’s position last month after serving five years in office, was accused of attempting to attempted to coerce or induce” Simone Grimes, a former special adviser at the FHFA, to “engage in a personal relationship with him by suggesting or implying he would use his authority to assist her in attaining an executive position.” The FHFA OIG also accused Watt with not being candid while interviewed about Grimes’ charges of sexual harassment, adding that he was critical of being put in the spotlight about the issue.
 
“Lacking any exculpatory facts, the Director criticizes the inquiry that brought his misconduct to light,” the FHFA OIG report stated. “In particular, the Director alleges that: the report represents a ‘rush to judgment’ so we could vindicate our independence and integrity; we improperly investigated a matter under Title VII and compromised FHFA's EEO process; our administrative inquiry was flawed; and we misled a federal court in our subpoena application. For the reasons set forth in this report, we flatly reject each of the process issues raised by the FHFA Director.”
 
Watt did not publicly comment on the report’s release.

 
About the author
Published
Feb 18, 2019
Industry Input Sought On Proposed Increases To Mortgage Licensing Fees

Conference of State Bank Supervisors seeking public comment on proposed increases

Building A Digital Bridge Between Separate Revenue Streams

Menu cloud-based technology capitalizes on the entire borrowing cycle

Economists Less Confident Rates Will Drop Following Fed Decision

After sixth consecutive month with no change, the likelihood of cuts in 2024 feels "more out of reach."

FHFA Final Rule Released

Rule codifies equitable housing programs, GSE Plans

FDIC Announces Closure Of Republic First Bank

The Philadelphia-based lender's 32 branches will now be served by Fulton Bank

Mortgage Servicers Added To Junk-Fee Naughty List

New release from CFPB lays out areas of improvement, and concern, for mortgage servicers.