Sen. Adam Schiff faces DOJ referral over yearslong mortgage fraud allegations linked to primary residence claims.

Federal Housing Chief Refers Schiff for Criminal Probe

Senator Adam Schiff, D-Calif., is facing a referral to the Department of Justice for criminal prosecution over allegations of mortgage fraud stretching back years, according to official communications from the U.S. Federal Housing Finance Agency (FHFA). The referral, sent by FHFA Director William Pulte in May, asserts that Schiff repeatedly falsified bank documents and property records to obtain more favorable loan terms for a Potomac, Maryland property, impacting mortgage payments from 2003 to 2019.

The letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche cites a memo from Fannie Mae’s financial crimes investigations unit, which concluded that Schiff engaged in "a sustained pattern of possible occupancy misrepresentation" across five Fannie Mae loans. The pattern allegedly involved Schiff and his wife claiming the Maryland property as their primary residence—despite Schiff serving as a California representative—during multiple refinancing filings between 2009 and 2013. Schiff reportedly did not list the Maryland home as a secondary residence until 2020.

The investigation further notes that, while declaring the Maryland house as his primary home for mortgage purposes, Schiff also took a homeowner’s tax exemption for a condominium in Burbank, California, listing that property as his primary residence for a $7,000 property tax reduction. In public statements, Schiff’s spokesperson explained that both addresses had been listed as primary residences because they were occupied throughout the year, aiming to distinguish them from a vacation property.

Allegations Span Multiple Years and States

According to the FHFA, primary residence mortgages generally carry lower interest rates and more favorable terms compared to secondary residences, as lenders view them as less risky. The agency contends that Schiff’s alleged misrepresentations enabled him to benefit financially at the expense of federal loan programs overseen by Fannie Mae.

These developments follow the recent conviction of other public officials for similar mortgage-related offenses, drawing attention to the broader issue of mortgage fraud among high-profile figures. The FHFA has underscored its commitment to cooperating with the Justice Department to protect homebuyers and taxpayers.

President Donald Trump, a longtime critic of Schiff, amplified the issue on social media, calling Schiff a "scam artist" and demanding that he be held accountable. Trump’s posts accused Schiff of defrauding the system by claiming Maryland as a primary residence for cheaper loans, despite his official residency in California as a member of Congress. "Mortgage Fraud is very serious, and CROOKED Adam Schiff (now a Senator) needs to be brought to justice," Trump wrote.

Schiff, who led House impeachment efforts against Trump and has been a frequent target of the president’s criticism, responded to the allegations by labeling them politically motivated. "It’s nothing new – but his attacks on the rule of law are more dangerous than ever," Schiff said in a video statement, denying any wrongdoing and asserting that the allegations are baseless.

The Justice Department has yet to announce whether it will move forward with criminal proceedings. The case comes amid ongoing scrutiny of public officials’ financial practices and highlights deep partisan divisions over the use of investigatory powers and the handling of alleged misconduct by elected leaders.

The investigation into Schiff’s mortgage records follows a similar referral involving New York Attorney General Letitia James, who is also accused of misrepresenting her primary residence on mortgage documents. As these cases unfold, federal housing authorities reaffirm their dedication to upholding the integrity of the mortgage system and ensuring equal treatment under the law.