Swalwell Files Lawsuit Against Former FHFA Head
California Congressman Eric Swalwell has initiated a federal civil lawsuit against William Pelt, who led the Federal Housing Finance Agency (FHFA) during the Trump administration. The case has been filed in the U.S. District Court for the District of Columbia.
The lawsuit claims that Pelt breached the Privacy Act of 1974 and violated Swalwell’s First Amendment rights by improperly accessing private mortgage records from Fannie Mae and Freddie Mac. It contends that he “manufactured claims” of mortgage fraud that implicated Swalwell and other notable Democrats, including New York Attorney General Letitia James and Senator Adam Schiff.
This incident prompted a referral to the Department of Justice on November 13, resulting in a federal investigation into Swalwell, who is accused of misrepresenting his primary residence on a mortgage application. Swalwell has denied any wrongdoing and asserts that these allegations are politically motivated, stemming from his outspoken criticisms of President Trump, notably during his role as an impeachment manager in 2021. His lawsuit argues that the FHFA did not have the authority to access or disclose the records in question.
The lawsuit claims, “He used these records to fabricate fanciful claims of mortgage fraud and refer them to the Department of Justice for prosecution. The target of his latest criminal referral was plaintiff Eric Swalwell, one of the president’s most vocal and visible critics in Congress.”
Swalwell is now the fourth Democrat to be accused of mortgage fraud in recent months, following Schiff, James, and Federal Reserve Governor Lisa Cook, who was appointed by Biden.
The allegations suggest that Swalwell’s $1.2 million residence in Washington, D.C., was incorrectly classified as his primary home, which would have allowed him to qualify for substantial refinancing options although he claims his primary residence is in California. He maintains that his D.C. property is mostly his wife’s.
“Mr. Pulte’s referral to the Department of Justice was not only a gross misrepresentation of reality but also a gross abuse of power in violation of the law,” the lawsuit states.
In a statement, Swalwell added, “Today, I filed a civil lawsuit against FHA Administrator Bill Pelt for violating privacy laws and the First Amendment. Secretary Pulte scoured the personal records of his political opponents in order to silence them.”
Fannie Mae and Freddie Mac do not qualify as federal agencies, thus they aren’t obligated to maintain public records under the Freedom of Information Act. However, the FHFA, as a regulatory body, does publish data and is required to do so for transparency purposes.
Recently, Swalwell also announced his candidacy for governor of California on an episode of “Jimmy Kimmel Live!”
