Sen. Adam Schiff, a long-time Democratic senator from California, has been referred to the Department of Justice (DOJ) for alleged mortgage fraud, marking a significant legal development in the ongoing scrutiny of high-profile political figures. The referral, issued by the FHFA director, William Pulte, centers on Schiff’s alleged falsification of mortgage documents for properties in Maryland and California, which supposedly enabled him to secure more favorable loan terms.
The detailed referral outlines how Schiff and his wife, who purchased a home in Potomac, Maryland, in 2003, claimed it as their primary residence despite Schiff representing California in Congress. This led to lower interest rates on their mortgage, which Pulte argues are typically reserved for primary residences. In 2009, 2011, 2012, and 2013, Schiff reaffirmed that the Maryland property was their primary residence in refinance filings, despite being an elected official representing California at the time. The letter also details that Schiff allegedly claimed residency in a Burbank, California condo for tax benefit, despite being elected to the Senate. As such, the FHFA director believes Schiff may have committed wire fraud, mail fraud, bank fraud, and made false statements to financial institutions.
Trump, who has been a vocal critic of Schiff for years, has endorsed the investigation, calling for Schiff’s prosecution. Trump took to his TRUTH Social platform to demand that Schiff be held accountable, stating, “I have always suspected Shifty Adam Schiff was a scam artist. And now I learn that Fannie Mae’s Financial Crimes Division have concluded that Adam Schiff has engaged in a sustained pattern of possible Mortgage Fraud. Mortgage Fraud is very serious, and CROOKED Adam Schiff (now a Senator) needs to be brought to justice.” The letter also highlights how past convictions in mortgage fraud cases have underscored the gravity of the allegations. In 2023, a federal jury convicted former Baltimore prosecutor Marilyn Mosby for making false statements on a mortgage application for a Florida condominium. Another St. Louis man pleaded guilty to fraudulent home mortgages last month. These cases, the letter notes, reflect how mortgage fraud is a serious issue that the federal government is actively addressing.
Schiff has denied the allegations, calling them baseless and part of Trump’s ongoing efforts to attack his character. In a video statement, Schiff responded to the claims, stating, “He’s accused me of treason, he’s also accused me of leaking classified information, he’s accused me of fraud, it’s been basically one thing after another, all baseless, all without merit.” Schiff has also pointed to Trump’s repeated accusations of him, suggesting that the current allegations are yet another attempt to undermine him. Despite Schiff’s denials, the referral to the DOJ marks a critical step in the investigation, and the outcome could have significant implications for both Schiff and the broader landscape of political accountability.