Federal Housing Authorities Refer Senator Adam Schiff for Criminal Investigation Over Mortgage Fraud Allegations

Federal housing officials have formally referred U.S. Senator Adam Schiff (D-CA) for criminal prosecution over allegations of mortgage fraud, marking the second such referral involving a prominent Democratic figure this year amid heightened scrutiny by the Trump administration.

According to a letter from U.S. Federal Housing Finance Agency (FHFA) Director William Pulte to Attorney General Pam Bondi, Schiff is accused of misrepresenting a property in Maryland as his primary residence from 2009 to 2020 while serving as a congressman representing California’s 28th and 29th districts. This designation purportedly allowed him to secure more favorable mortgage terms on multiple government-backed loans.

The FHFA’s referral is based on findings from the Fannie Mae Financial Crimes Division, which reported a “sustained pattern of possible occupancy misrepresentation” involving five loans. Pulte’s letter alleges Schiff falsified bank and property documents to obtain lower interest rates typically reserved for primary residences, despite his obligation to reside in California during his congressional tenure.

Media sources also indicate that Schiff claimed a homeowner’s tax exemption in Burbank, California, during this period, further complicating his residency claims.

While members of Congress are only required to live within the state they represent—not necessarily in their specific district—the alleged misrepresentations may violate electoral and mortgage regulations. Mortgage loans for primary residences generally carry lower interest rates compared to those for secondary homes due to perceived lower risk.

President Trump highlighted the investigation on Truth Social, accusing Schiff of defrauding the American public. However, it is unclear whether the Department of Justice is actively investigating or prosecuting the matter at this time.

This referral follows a similar case involving New York Attorney General Letitia James, who was also referred for criminal prosecution earlier this year amid mortgage documentation discrepancies. James has denied wrongdoing and accused the Trump administration of political targeting.

A 2023 statement from Schiff’s office defended the arrangement, though further comments have yet to be provided.