Democrat Senator Adam Schiff is under federal criminal investigation after housing authorities referred him to Attorney General Pam Bondi for prosecution in a major mortgage fraud scandal.
According to a letter from FHFA Director William Pulte, Schiff falsely claimed a property in Potomac, Maryland as his primary residence—despite representing California in Congress during the same time period.
The explosive referral makes Schiff the second high-profile Democrat handed over to DOJ prosecutors this year, following similar fraud allegations against New York AG Letitia James.
Schiff Accused of Lying on Government Loan Applications
Pulte says Fannie Mae’s Financial Crimes Division uncovered a “sustained pattern of possible occupancy misrepresentation” involving five government-backed loans between 2003 and 2019.
“Schiff appears to have falsified records to receive favorable loan terms,” Pulte wrote. “Such misconduct jeopardizes the U.S. mortgage market.”
By claiming the Maryland home as a primary residence, Schiff allegedly scored lower interest rates meant for owner-occupied properties—rates he wasn’t legally eligible for.
Meanwhile, Schiff was simultaneously claiming tax breaks on his California home, according to the letter.
Trump: Schiff “Ripped Off America”
President Trump broke the news Tuesday in a Truth Social post.
“Adam Schiff said his primary residence was in MARYLAND to get a cheaper mortgage and rip off America—when he must LIVE in CALIFORNIA because he was a Congressman from CALIFORNIA,” Trump said.
Trump called it a “sustained pattern of mortgage fraud” and said Schiff “must be brought to justice.”
Possible Felony Charges Loom
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Primary residence fraud is a serious federal offense
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Lying on mortgage documents can result in fines and prison time
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The DOJ has not yet announced whether it has opened a formal case
Schiff’s office previously tried to spin the dual-primary-residence issue by claiming both homes were used “throughout the year.”
But the law is clear: you can’t claim multiple homes as your primary residence for the purpose of securing better loan terms.
Pulte’s letter includes proof that Schiff claimed the MD property as his primary in 2009, 2011, 2012, and 2013—while collecting tax perks on his CA home in Burbank.
