Data safeguards must harden now

A careful editorial look at how mortgage data becomes a political instrument and why safeguards are overdue.

Trump Targets the Fed as Lisa Cook Exposes a data trap

Donald Trump has shifted his political push from traditional attacks to using federal data as a weapon. After firing Federal Reserve Board Governor Lisa Cook, he echoed claims that she falsified mortgage records, a move that underscores a broader pattern: data collected by the government can be repurposed to discredit opponents. The piece explains how FHFA supervises data from Fannie Mae and Freddie Mac, which dominate a large slice of the mortgage market, and how control over this archive can turn routine compliance into a political weapon. The analysis warns that the risk lies less in a single allegation than in the ease with which a comprehensive paper trail can be accessed and weaponized.

The article then traces a long arc of reform history. It argues that the lack of a strong confidentiality framework for FHFA data creates a loophole that could let political motives drive the sharing of private loan information. By comparing this moment to past episodes with the IRS, the piece shows how presidents and agencies used data to target or disrupt opponents. It calls on Congress to implement protections—logs, clear disclosure rules, and penalties—to prevent abuse while preserving the agency’s mission to oversee housing finance.

The piece highlights a growing tension between governance and surveillance. When a presidency sits atop a data pipeline, oversight can blur into leverage, threatening trust in both government and markets. It also points to a broader principle: data is powerful when it is both accessible and restricted by clear rules. The absence of formal protections for FHFA data is a vulnerability that could invite political misuse, regardless of who holds power. The analysis argues that reforms must go beyond casual norms and create enforceable boundaries that protect ordinary homeowners.

A practical path forward is sketched in reform proposals: establish statutory confidentiality for mortgage data, require public logs of disclosures, and impose penalties for improper use. These steps would not solve every risk, but they would restore a baseline of accountability. The piece cautions that culture and leadership matter as much as law, and that real safeguards require ongoing vigilance from lawmakers, regulators, and the public. Without them, the same data that protects markets could also erode trust in the political system itself.

Highlights

The next step is clear: set limits before data becomes a tool for political leverage.