Sen. Adam Schiff is facing a bombshell criminal referral for alleged mortgage fraud. A federal housing official has accused the California Democrat of falsifying documents to snag favorable loan terms, as Fox News reports. This isn’t just paperwork gone awry -- it’s a potential betrayal of public trust.
William Pulte, head of the Federal Housing Finance Agency, sent a letter to the Department of Justice in May, urging a probe into Schiff’s mortgage dealings. The referral, recently obtained by Fox News, claims that Schiff misrepresented his primary residence to secure better rates on a Maryland property. It’s a classic case of a politician allegedly gaming the system for personal gain.
In 2003, Schiff and his wife bought a $870,000 home in Potomac, Maryland. They secured a $610,000 Fannie Mae-backed mortgage at 5.625% interest, claiming the property as their primary residence. Primary residence loans, as Pulte notes, come with lower rates, 0.25% to 0.50% less than riskier secondary residence loans.
Schiff reaffirmed the Maryland home as his primary residence in refinancing filings in 2009, 2011, 2012, and 2013. Yet, as a California congressman during this period, he also claimed a homeowner’s tax exemption on a Burbank condo, labeling it his primary residence for a $7,000 tax break. This double-dipping raises eyebrows about his honesty.
“Schiff appears to have falsified records to receive favorable loan terms,” Pulte wrote, pointing to potential violations of federal laws like wire fraud and bank fraud. Such accusations aren’t new -- Pulte referenced recent convictions, such as former Maryland state's attorney Marilyn Mosby’s, for false mortgage statements. Schiff’s alleged scheme, if true, fits a troubling pattern.
A 2011 affidavit, signed by Schiff and obtained by Fox News, certified the Maryland house as his primary residence. This document, among others, fueled Pulte’s suspicions of a “sustained pattern of possible occupancy misrepresentation” on five Fannie Mae loans. The evidence seems to stack against Schiff’s claims of innocence.
On Monday, Pulte received a memo from Fannie Mae’s financial crimes unit, concluding Schiff had engaged in possible mortgage fraud. The findings suggest a deliberate effort to mislead lenders for financial advantage. This isn’t just sloppy bookkeeping -- it’s a calculated move, according to the memo.
Schiff didn’t list the Maryland home as a secondary residence until 2020, long after securing multiple loans. His spokesperson claimed in 2023 that both the California and Maryland homes were “occupied throughout the year” to justify the dual primary residence claims. That excuse sounds like a convenient dodge to cover questionable financial maneuvers.
“Adam’s primary residence is Burbank, California,” his spokesperson insisted in 2023, doubling down on the narrative. But claiming two primary residences simultaneously reeks of opportunism, especially when it nets lower interest rates and tax breaks. The public deserves better from a sitting senator.
Schiff, who led the House Intelligence Committee’s impeachment inquiry into Trump, has a history of accusing others of misconduct. “He’s accused me of treason,” Trump fired back, labeling Schiff a “scam artist.” The irony of Schiff pointing fingers while allegedly falsifying records is hard to ignore.
President Donald Trump didn’t mince words: “Mortgage fraud is very serious, and CROOKED Adam Schiff needs to be brought to justice.” Schiff’s response? He dismissed the allegations as “baseless” and accused Trump of attacking the rule of law.
“It’s nothing new,” Schiff said, brushing off the referral as another attack. His deflection does little to address the documented evidence of possible fraud. Playing the victim won’t erase the paper trail.
The Justice Department’s stance on pursuing Schiff remains unclear. Pulte emphasized the FHFA’s commitment to rooting out mortgage fraud, stating, “We take very seriously allegations of mortgage fraud or other criminal activity.” The DOJ’s response could set a precedent for holding powerful figures accountable.
Pulte’s letter underscores the broader impact: “Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities.” Fraudulent schemes, even by senators, undermine the stability of the U.S. mortgage market. Taxpayers and homebuyers deserve protection from such antics.
Schiff’s alleged actions, if proven, expose a troubling double standard. While preaching accountability, he may have exploited loopholes for personal gain. The DOJ must decide if this senator’s conduct warrants the same scrutiny he so eagerly applied to others.
