Senator Adam Schiff, D-Calif., finds himself in hot water over allegations of mortgage fraud that could make even the most seasoned bureaucrat blush.
According to Fox News, Schiff, a prominent figure in Democratic circles, has been referred to the Department of Justice by FHFA Director William Pulte for potential criminal prosecution tied to questionable mortgage documents and property records related to a home in Potomac, Maryland, spanning nearly two decades of dealings.
Let’s rewind to 2003, when Schiff and his wife purchased a home in Potomac for $870,000, securing a Fannie Mae-backed mortgage of $610,000 at a favorable 5.625% rate over 30 years by claiming it as their primary residence. That’s a sweet deal—if it’s on the up-and-up. But questions arise since Schiff, an elected official representing California, seemed to have a foot in two states at once.
Through the years—specifically in refinancing filings in 2009, 2011, 2012, and 2013—Schiff reaffirmed this Maryland property as his primary home, even signing a 2011 affidavit to that effect. Meanwhile, back in Burbank, California, he claimed a homeowner’s tax exemption on a condo for a tidy $7,000 reduction, also listing it as his primary residence. Talk about having your cake and eating it too, without the IRS batting an eye.
Here’s the rub: primary residence mortgages come with better terms, like lower interest rates, compared to secondary homes, which lenders see as riskier by a margin of 0.25-0.50% or more. If you’re claiming two “primary” homes, someone’s bound to notice the math doesn’t add up.
It wasn’t until 2020 that Schiff and his wife finally listed the Maryland property as a secondary residence. That’s a long stretch of enjoying the perks of a primary loan while juggling dual residency claims. One might wonder if this was just a paperwork oversight or a calculated financial play.
Fast forward to May 2025, when FHFA Director William Pulte sent a letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, referring Schiff for possible prosecution. Pulte didn’t mince words, stating, “Schiff appears to have falsified records in order to receive favorable loan terms.” That’s a bold accusation from a federal housing watchdog, and it’s hard to ignore the weight of such a claim.
Pulte also pointed out, via a memo from Fannie Mae’s financial crimes investigations received just days before his referral, that Schiff may have engaged in a “sustained pattern” of occupancy misrepresentation across five Fannie Mae loans. If true, this isn’t just a one-off mistake; it’s a potential breach of trust that could violate laws against wire fraud, mail fraud, and false statements to banks.
“We take very seriously allegations of mortgage fraud or other criminal activity,” Pulte emphasized in his letter. Well, no kidding—when the integrity of the U.S. mortgage market is at stake, heads should roll if the evidence holds. But let’s not rush to judgment until the DOJ weighs in, which, at this moment, remains unclear.
President Donald Trump, never one to shy away from a public spat, jumped into the fray earlier this week, posting on TRUTH Social, “CROOKED Adam Schiff… needs to be brought to justice.” While Trump’s rhetoric is fiery as ever, it echoes a frustration many feel when elected officials seem to play by different rules. Still, justice must follow facts, not just passionate social media posts.
Schiff, for his part, fired back in a video statement on Tuesday, saying, “His attacks on the rule of law are more dangerous than ever.” It’s a classic deflection, painting himself as the victim while sidestepping the core allegations. If the documents don’t lie, though, no amount of finger-pointing at critics will erase the paper trail.
A spokesperson for Schiff previously told CNN in 2023, “Adam’s California and Maryland addresses have been listed as primary residences… to distinguish them from a vacation property.” That explanation might sound reasonable to some, but it dodges the financial benefits tied to primary residence claims. Surely, a seasoned politician like Schiff understood the stakes of such declarations.
Recent cases remind us that mortgage fraud isn’t a trivial matter—take Marilyn Mosby, convicted in 2023 for false statements on a mortgage application, or a St. Louis man who pleaded guilty to similar fraud just last month. These aren’t abstract crimes; they undermine trust in our financial systems. If Schiff’s actions mirror these patterns, as Pulte suggests, the consequences should match the precedent.
At the heart of this story is a simple question: Are our leaders held to the same standards as everyday Americans? Many on the right, and even some moderates, might argue that too often, the elite get a pass on questionable dealings that would land the average Joe in handcuffs. This case, if pursued by the DOJ, could be a litmus test for accountability across the political spectrum.
Until the Justice Department acts—or declines to—Schiff’s future hangs in a peculiar balance, with public opinion likely split along predictable partisan lines. Yet, regardless of political affiliation, most would agree that integrity in financial dealings isn’t negotiable, especially for those in power. Let’s hope the truth, whatever it may be, comes to light without the usual Washington spin.
