Sen. Adam Schiff, D-Calif., is under criminal investigation by the U.S. Attorney’s Office in Maryland for alleged mortgage fraud, according to a Trump administration source who spoke with Fox News.
The source confirmed that the investigation is ongoing and stems from a referral submitted to the Department of Justice earlier this year by the Federal Housing Finance Agency (FHFA).
The FHFA’s referral, sent in May, was based on multiple allegations that Schiff falsified documents in order to obtain more favorable mortgage terms on a property he owns in Potomac, Maryland.
According to the letter written by FHFA Director William Pulte, the alleged misconduct occurred over a span of 16 years.
“Based on media reports, Mr. Adam B. Schiff has, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003–2019 for a Potomac, Maryland-based property,” Pulte wrote.
“As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities and the security and stability of the U.S. mortgage market.”
Fox News reported that the FHFA’s internal investigation concluded Schiff allegedly engaged in “a sustained pattern of possible occupancy misrepresentation” on five separate loans backed by Fannie Mae.
In 2003, Schiff and his wife purchased the Potomac home for $870,000.
They secured a Fannie Mae-backed mortgage for $610,000 at a 5.625% interest rate over a 30-year term by claiming the property would be their primary residence.
According to Pulte’s letter, Schiff reaffirmed that the home was his primary residence during multiple refinancing actions in 2009, 2011, 2012, and 2013, despite serving as a California-based U.S. Representative during that period.
Fox News obtained a 2011 affidavit in which Schiff certified that the Maryland property was his primary residence.
However, Schiff did not designate the Maryland home as a secondary residence until 2020, according to Pulte.
Simultaneously, Schiff claimed a homeowner’s tax exemption on a condominium he owns in Burbank, California.
The exemption reduced his property tax by $7,000 and was based on his representation that the Burbank condo was his primary residence.
In 2023, a spokesperson for Schiff told CNN, “Adam’s primary residence is Burbank, California, and will remain so when he wins the Senate seat.”
The FHFA director cited possible violations of several federal statutes, including wire fraud, mail fraud, bank fraud, and 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.
A spokesperson for Schiff stated in 2023 that both his California and Maryland addresses were listed as primary residences for loan purposes because “they are both occupied throughout the year and to distinguish them from a vacation property.”
The matter drew comparisons to a 2023 conviction of Marilyn Mosby, the former Baltimore City state’s attorney, who was found guilty of making false statements on a mortgage application related to a Florida property.
Her case also involved allegations of occupancy misrepresentation.
