Senator Adam Schiff, D-Calif., has been referred to the Department of Justice for potential criminal prosecution over allegations of mortgage fraud, according to a letter obtained by Fox News. The referral, made by U.S. Federal Housing Finance Agency (FHFA) Director William Pulte in May, cites alleged falsification of mortgage and property records connected to multiple real estate loans between 2003 and 2019.
The letter, addressed to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, outlines concerns stemming from Schiff’s use of Fannie Mae-backed mortgages for a residence in Potomac, Maryland, while simultaneously claiming a primary residence tax exemption for a property in Burbank, California.
“Mr. Adam B. Schiff has, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms,” Pulte wrote. “Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities and the stability of the U.S. mortgage market.”
A memo from Fannie Mae’s financial crimes unit reportedly concluded that Schiff engaged in a “sustained pattern of possible occupancy misrepresentation” on five loans. The core allegation centers on Schiff’s consistent declaration—during multiple refinancing events—that the Maryland property was his primary residence, despite his elected service as a California congressman during the same period.
Documentation cited by FHFA includes a 2011 affidavit signed by Schiff affirming the Maryland home’s primary residency status. According to the letter, Schiff and his wife didn’t list the property as a secondary residence until 2020. Simultaneously, Schiff reportedly benefited from California’s homeowner tax exemption on his Burbank condo, saving approximately $7,000 annually on property taxes.
"Primary residence mortgages receive more favorable loan terms," Pulte noted, adding that the discrepancy may have led to improper financial advantages over nearly two decades.
The FHFA director said Schiff’s alleged misrepresentations could violate several federal statutes, including those related to wire fraud, bank fraud, and false statements to financial institutions. He drew parallels to recent prosecutions, including that of former Baltimore City State’s Attorney Marilyn Mosby, who was convicted last year for making false statements on a mortgage application.
A 2023 statement from Schiff’s spokesperson defended the use of primary residence classifications on both homes, claiming they are “occupied throughout the year and to distinguish them from a vacation property.”
While the Justice Department has not publicly announced whether it is pursuing a case, former President Donald Trump called for action on Tuesday. “Mortgage Fraud is very serious,” Trump wrote on Truth Social, “and CROOKED Adam Schiff… needs to be brought to justice.”
Schiff responded in a video statement, dismissing the allegations as politically motivated. “He’s accused me of treason, leaking classified information, fraud—it’s been one thing after another,” Schiff said. “All baseless, all without merit.”
Schiff, who represented California in the House before winning a Senate seat in 2024, led the impeachment inquiry into Trump and played a central role in investigations of Trump’s alleged ties to Russia.
The FHFA emphasized its willingness to cooperate with the DOJ, noting that mortgage fraud undermines trust in federal lending institutions and harms taxpayers.