Senator Adam Schiff, a Democrat from California, has been referred to the Department of Justice for potential criminal charges related to mortgage documents. This action follows a letter from the director of the Federal Housing and Finance Agency (FHFA) to the Attorney General, citing alleged misconduct involving Schiff, who owns properties in both California and Maryland.
In a letter obtained on Wednesday, FHFA Director William Pulte stated that Schiff had allegedly forged bank documents and property records on multiple occasions to secure better loan terms for a Maryland property from 2003 to 2019. Pulte emphasized the seriousness of mortgage fraud, noting that it compromises the integrity of FHFA’s regulatory role and the stability of the U.S. mortgage market.
More recently, investigations revealed that Schiff may have shown a “persistent pattern of misrepresentation” regarding five loans with Fannie Mae. It remains unclear whether the Justice Department will take action against him, but former President Donald Trump has publicly called for such action, alleging Schiff committed mortgage fraud.
The letter mentioned that Schiff and his wife purchased a Potomac, Maryland home in 2003 for $870,000 and signed a mortgage agreement for $610,000, indicating the home would be their primary residence. However, despite being a California representative, the couple reaffirmed this claim in refinancing applications several times between 2009 and 2013.
An affidavit from 2011 showed Schiff verifying this home as his primary residence. Notably, in 2020, they only recognized the Maryland residence as secondary. Additionally, Schiff has sought a homeowner’s tax exemption for a condominium in Burbank, California, claiming it was his primary residence.
In defense, Schiff’s representative clarified that both properties were lived in year-round and listed for loan purposes. The letter from officials indicated that primary mortgages provide better terms than secondary ones due to the perceived risk in secondary residential mortgages.
Schiff’s alleged violations may relate to federal laws against wire fraud, bank fraud, and making false statements to financial institutions. The letter also drew parallels to other cases, including a recent conviction for false statements regarding a mortgage application.
Trump’s comments on social media suggested he always suspected Schiff of fraud. He stated that the findings from Fannie Mae’s investigation indicated Schiff’s involvement in a continuous pattern of mortgage fraud.
Schiff, who led a prominent investigation into Trump as part of his responsibilities, responded to these accusations, citing Trump’s longstanding threats of prosecution against him. He described the claims as baseless and highlighted that these attacks undermine the rule of law.
