A high-ranking federal housing official has formally referred Sen. Adam Schiff, D-Calif., to the Department of Justice, alleging the senator engaged in a yearslong mortgage fraud scheme involving falsified residency claims and misleading financial records.
The referral, obtained by Fox News, stems from a letter dated May and sent by U.S. Federal Housing Finance Agency (FHFA) Director William Pulte to Attorney General Pam Bondi and Deputy AG Todd Blanche. In the letter, Pulte alleges Schiff falsified critical information on loan applications from 2003 to 2019 in order to secure better mortgage terms on a property in Potomac, Maryland.
“Jeopardizing the Mortgage Market”
“Based on media reports, Mr. Adam B. Schiff has, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003-2019 for a Potomac, Maryland-based property,” Pulte wrote.
He continued, “As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities and the security and stability of the U.S. mortgage market.”
According to a memo received by Pulte on Monday from Fannie Mae’s financial crimes division, Schiff allegedly exhibited “a sustained pattern of possible occupancy misrepresentation” across five separate Fannie Mae-backed loans.
The Numbers Behind the Allegations
In 2003, Schiff and his wife purchased the Maryland home for $870,000, locking in a 30-year mortgage of $610,000 at a 5.625% interest rate under the premise that the home would serve as their “primary and principal residence.” But the letter outlines a pattern that may contradict that claim.
Schiff reaffirmed the Maryland property as his primary residence in multiple mortgage filings in 2009, 2011, 2012, and 2013 even while actively serving as a California congressman. A copy of a 2011 affidavit obtained by Fox News shows Schiff personally certified the Potomac home as his main address.
Pulte stated that Schiff and his wife didn’t list the Maryland home as a secondary residence until 2020.
Two Homes, One Primary Claim?
Simultaneously, Schiff was claiming a homeowner’s tax exemption in Burbank, California—another primary residence designation that earned him a $7,000 reduction off the state’s 1% property tax. This double dipping didn’t go unnoticed.
In 2023, Schiff’s spokesperson clarified: “Adam’s primary residence is Burbank, California, and will remain so when he wins the Senate seat.”
Pulte’s letter explained why these distinctions matter: “Primary residence mortgages receive more favorable loan terms, including lower interest rates, than secondary residence mortgages.” He noted that lenders view secondary homes as higher-risk, which typically results in interest rates 0.25 to 0.50% higher, sometimes more.
Pulte believes Schiff’s conduct may violate multiple federal laws, including those against wire fraud, bank fraud, mail fraud, and making false statements to financial institutions.
Previous Cases Mirror This One
To underscore the severity, Pulte cited two recent criminal cases. In 2023, former Baltimore City State’s Attorney Marilyn Mosby was convicted for lying on mortgage applications for a Florida property. Just last month, a St. Louis man pleaded guilty to similar charges after a joint effort between the DOJ and FHFA’s inspector general.
“There are unfortunately too many examples of individuals who commit fraud or mortgage fraud,” Pulte wrote. “As always, we look forward to cooperating with the Department of Justice to support any actions that the Department of Justice finds appropriate. U.S. Federal Housing FHFA appreciates the Department of Justice’s support in ensuring the protection of American homebuyers and taxpayers from mortgage fraud and other financial misconduct.”
Trump Weighs In, Demands Action
Former President Donald Trump wasted no time reacting. On Tuesday, he blasted Schiff on Truth Social, labeling him a “scam artist.”
“I have always suspected Shifty Adam Schiff was a scam artist. And now I learn that Fannie Mae’s Financial Crimes Division have concluded that Adam Schiff has engaged in a sustained pattern of possible Mortgage Fraud,” Trump wrote. “Mortgage Fraud is very serious, and CROOKED Adam Schiff (now a Senator) needs to be brought to justice.”
Trump’s demand for legal accountability came just days after the news broke and highlights the long-standing animosity between the two political figures.
Schiff Fires Back
In a video statement released Tuesday, Schiff dismissed the accusations as part of a long-running political vendetta orchestrated by the former president.
“He’s accused me of treason, he’s also accused me of leaking classified information, he’s accused me of fraud, it’s been basically one thing after another, all baseless, all without merit,” Schiff said. “It’s nothing new – but his attacks on the rule of law are more dangerous than ever.”
Schiff has a long history of clashing with Trump. As chairman of the House Intelligence Committee, he led the first impeachment inquiry into Trump, issued multiple subpoenas, and spearheaded investigations into alleged collusion with Russia.
What Comes Next?
While it’s not yet clear whether the Department of Justice will pursue charges, Schiff is facing intensifying scrutiny. Fox News reached out to DOJ officials for comment, but they have not responded.
With a growing paper trail, media attention, and political firestorm brewing, Schiff’s mortgage records may become the next battleground in a saga marked by sharp partisanship and legal complexity.
