US President Donald Trump has named a housing official to serve as acting Director of National Intelligence (DNI), the country's top spy chief who oversees 18 government intelligence agencies.

Bill Pulte, part of a powerful home-building dynasty and a private equity financier, has no known background in intelligence, and his selection to temporarily fill the position is stirring controversy among lawmakers and others.

Pulte has been accused of using his role of director of the Federal Housing Finance Agency to target Trump's perceived enemies by making criminal referrals over claims of mortgage fraud.

Outgoing Director Tulsi Gabbard's last day is 30 June.

In an announcement on his social media platform on Tuesday, Trump praised Pulte for overseeing government-controlled mortgage companies Fannie Mae and Freddie Mac.

"William has deep experience managing the most sensitive matters in America, the safety and soundness of the Markets, and over 10 Trillion Dollars at Fannie Mae/Freddie Mac, a substantial increase from where it was just 12 months ago," Trump posted.

"During this period, he will remain Director of the Federal Housing Finance Agency, and Chairman of Fannie Mae/Freddie Mac. Congratulations to Director Pulte!"

Fannie Mae and Freddie Mac buy mortgages that they either hold or sell as securities, creating liquidity for the housing market. They are regulated by the FHFA.

Democrats swiftly condemned the decision to appoint Pulte to the top spy role.

"This appointment speaks volumes about what this president expects from the nation's top intelligence official," said Senator Mark Warner, the top Democrat on the Senate Intelligence Committee.

"Rather than selecting a respected national security professional capable of delivering independent judgments, the president has chosen an official who has demonstrated not just willingness but eagerness to use the authorities of government to pursue political retribution."

Pulte has pushed for criminal charges against Trump's political enemies and sought to help Trump in his effort to remove leadership of the Federal Reserve, the US central bank.

Among those targeted were California Senator Adam Schiff, New York Democratic Attorney General Letitia James, former Federal Reserve Chairman Jerome Powell, and Fed Governor Lisa Cook.

None of the cases have led to successful prosecutions. The Government Accountability Office is now investigating how the FHFA carries out mortgage fraud investigations and how it may have changed its processes recently.

Schiff, responding to the DNI announcement,posted on X that Pulte "politicized and weaponized the housing agencies and will do the same in the intelligence community".

Republicans in Congress also reacted warily to Pulte's appointment.

Texas Senator John Cornyn, who recently lost the Republican nomination for his seat after Trump backed his opponent in a primary, told reporters: "I don't see any evidence of his qualifications for that job, but I'm willing to listen."

Acting officials may only serve 210 days before they must be confirmed by the Senate, meaning Pulte's posting will expire in late January 2027.