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Mel Watt, the powerful regulator of mortgage giants Fannie Mae and Freddie Mac, is under investigation for alleged sexual harassment of an employee.

A Federal Housing Finance Agency staffer accused FHFA Director Watt of repeatedly making inappropriate sexual advances when she tried to discuss career and salary concerns.

The conversations included a 2016 meeting during which Watt steered the conversation into a discussion of his feelings for the woman, according to documents and partial transcripts obtained by POLITICO. In a separate encounter, Watt asked about a tattoo on her ankle, saying, "If I kissed that one would it lead to more?"

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