According to a source provided by the Trump administration that was referenced by Fox News, Senator Adam Schiff, a Democrat from California, is supposedly the subject of a criminal investigation for potential mortgage fraud.
Fox News reported that the Federal Housing Finance Agency (FHFA) had submitted a criminal referral to the Department of Justice, accusing Schiff of falsifying bank documents and property records on multiple occasions in order to secure more favorable loan terms. This new development follows reports that were presented a month earlier.
In an affidavit that he submitted in 2011, Adam Schiff, who was serving as a member of Congress at the time, established that a property situated in Montgomery County, Maryland, was his principal residence.
Additionally, Schiff is the owner of a condominium in Burbank, California, which he mentioned as his primary address as recently as 2023, when he was running for the Senate of the United States of America.
According to Fox News Digital, his office did not immediately react to a request for comment that was made by the site.
During the month of May, the director of the Federal Housing Finance Agency (FHFA) wrote a letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, in which she detailed the allegations of misbehavior that Schiff had committed.
Additionally, it was alleged by Fox News that Pulte later obtained a memo from the financial crimes investigations branch of Fannie Mae, which asserted that Senator Adam Schiff had engaged in “a sustained pattern of possible occupancy misrepresentation” in relation to five Fannie Mae-backed loans.
A home in Potomac, Maryland, was purchased by Schiff and his wife in 2003 for the price of $870,000, as stated in the letter written by Schiff. With the assertion that the property would serve as both their primary and major residence, they were able to obtain a mortgage that was backed by Fannie Mae for the amount of $610,000, with a duration of thirty years and an interest rate of 5.625%.
The letter notes that Schiff and his wife regularly identified the Maryland property as their principal residence in mortgage refinancing forms submitted in 2009, 2011, 2012, and 2013. This was done even while Schiff was sitting as a United notes Representative for the state of California.
Fox News was able to acquire a copy of the affidavit that Schiff completed in 2011 for the purpose of verifying that the Maryland home is his primary residence.
According to Pulte, the pair did not identify the property in Maryland as a secondary house until the year 2020, as Fox pointed out further.
According to Pulte, who cited various accounts from the media, Schiff claimed a homeowner’s tax exemption on a condominium that he owns in Burbank, California, during the same time period. He asserted that the condominium was his primary residence, which resulted in a decrease of $7,000 on the 1-percent property tax.
According to the letter, a spokeswoman for the congressman who was serving at the time stated in 2023 that “Adam’s primary residence is Burbank, California, and will remain so when he wins the Senate seat.”
The federal housing official added that he is of the opinion that Schiff’s claimed conduct may represent violations of federal criminal statutes. These offenses include those that prohibit wire fraud, mail fraud, bank fraud, and making false statements to financial institutions.
Schiff “appears to have falsified records in order to receive favorable loan terms, and also appears to have been aware of the financial benefits of a primary residence mortgage when compared to a secondary residence mortgage,” Pulte wrote.
