Federal housing director refers Sen. Adam Schiff to DOJ, alleging yearslong mortgage fraud and false statements on home loans.

Federal Housing Director Alleges Longstanding Mortgage Fraud by Schiff

Senator Adam Schiff, D-Calif., is facing a criminal referral to the Department of Justice after the director of the U.S. Federal Housing Finance Agency (FHFA) alleged a pattern of mortgage fraud spanning more than a decade. The allegations stem from Schiff’s property holdings in California and Maryland, and from loan documents that, according to the FHFA, misrepresented his primary residence status to secure favorable loan terms.

FHFA Director William Pulte detailed the charges in a letter sent to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche in May, stating that Schiff and his wife “in multiple instances, falsified bank documents and property records” for a Potomac, Maryland home, with transactions dating from 2003 through 2019. The property was repeatedly certified as the Schiffs’ primary residence in filings for Fannie Mae-backed mortgages, despite Schiff’s service as a California congressman throughout that period.

A Fannie Mae financial crimes memo obtained by the agency reportedly concluded that Schiff engaged in a “sustained pattern of possible occupancy misrepresentation” on at least five loans. The FHFA asserts this misconduct endangers the security of the U.S. mortgage market and puts American homebuyers and taxpayers at risk.

Parallel Tax Breaks and Conflicting Home Declarations

While listing the Maryland property as their primary residence for mortgage purposes, the Schiffs simultaneously claimed a homeowner’s tax exemption on a Burbank, California condo—benefitting from a $7,000 property tax reduction. Only in 2020 did the couple update the Maryland home’s status to “secondary residence.”

FHFA Director Pulte’s letter emphasized that primary residence mortgages offer significantly better loan terms, including lower interest rates, compared to secondary residence loans, which are deemed riskier by lenders. “Schiff appears to have falsified records in order to receive favorable loan terms, and also appears to have been aware of the financial benefits,” Pulte wrote.

Schiff’s spokesperson has maintained that both properties “are occupied throughout the year” and were listed as primary residences “to distinguish them from a vacation property.”

The referral notes that the alleged conduct could violate federal laws prohibiting wire fraud, mail fraud, bank fraud, and false statements to financial institutions. Past cases cited include recent federal prosecutions for similar mortgage-related fraud.

President Donald Trump reacted sharply to the referral, posting on social media that Schiff’s actions constituted serious mortgage fraud and calling for the senator to be prosecuted. “Mortgage Fraud is very serious, and CROOKED Adam Schiff (now a Senator) needs to be brought to justice,” Trump stated.

Schiff Denies Wrongdoing, Cites Political Motive

Schiff, who was elected to the Senate after chairing high-profile congressional investigations into Trump, responded in a video statement, dismissing the allegations as baseless and politically motivated. “He’s accused me of treason, leaking classified information, and fraud—it’s been basically one thing after another, all baseless, all without merit,” Schiff said. “But his attacks on the rule of law are more dangerous than ever.”

As the Justice Department considers next steps, Schiff’s case has reignited debates over political accountability, the oversight of elected officials, and the enforcement of federal lending laws. The outcome could have broad implications for standards of conduct in public office and the legal risks of misrepresenting financial information.