Senator Adam Schiff Faces Federal Mortgage Fraud Investigation
A legal storm may be gathering around Senator Adam Schiff, as federal authorities reportedly investigate the California Democrat for alleged mortgage fraud, raising the possibility of criminal charges.
The probe centers on claims that Schiff misrepresented his primary residence and falsified property documents — actions that, if substantiated, could point to a long-running pattern of deception.
According to sources cited by Fox News, the U.S. Attorney’s Office in Maryland is overseeing the investigation. The news first surfaced on The Ingraham Angle, where host Laura Ingraham reported that Schiff could face potential criminal liability if the allegations hold.
The scrutiny follows an earlier referral from the Federal Housing Finance Agency (FHFA) to the Department of Justice. The agency alleges that Schiff repeatedly submitted false documents to obtain more favorable mortgage terms, potentially violating federal lending laws.
Court records and correspondence obtained by Fox News outline the claims in detail. In a sworn affidavit from 2011, then-Congressman Schiff listed a property in Montgomery County, Maryland, as his primary residence. Yet records also show that he maintained ownership of a condominium in Burbank, California, which he continued to designate as his primary residence as late as 2023 while serving as a U.S. Senator. Schiff’s office has not commented on the pending investigation.
In May, FHFA Director William Pulte sent a letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, highlighting the potential violations. “Media reports indicate that Mr. Adam B. Schiff may have repeatedly falsified bank and property records to secure favorable mortgage conditions, affecting payments from 2003 to 2019 for a Potomac, Maryland property,” Pulte wrote. He warned that such practices, if true, could destabilize portions of the U.S. mortgage market.
According to the FHFA, Fannie Mae’s financial crimes division found evidence of “a sustained pattern of possible occupancy misrepresentation” spanning five separate loans. Schiff and his wife purchased the Potomac property in 2003 for $870,000, taking out a $610,000 mortgage at 5.625% interest, contingent upon it being their primary residence. Refinancing documents from 2009, 2011, 2012, and 2013 maintained the same claim, despite Schiff representing California in Congress during that period.
The agency noted that Schiff’s Maryland home was not officially classified as a secondary residence until 2020, while he benefited from a primary-residence tax exemption on his Burbank condo, saving roughly $7,000 annually. A spokesperson for Schiff previously stated that both residences were considered primary for “loan purposes” since both were occupied year-round.
The FHFA’s letter raised the possibility that these actions could constitute violations of federal statutes covering bank fraud, wire fraud, mail fraud, and making false statements to financial institutions. The allegations suggest that Schiff may have sought to leverage mortgage rules to secure lower interest rates and other benefits for multiple homes.
Conclusion
If the claims are verified, Senator Schiff could face both serious legal challenges and political fallout. The investigation highlights potential ethical and legal concerns regarding the handling of mortgage obligations by high-ranking public officials. As federal prosecutors continue their inquiry, the outcome could influence not only Schiff’s career but also broader public confidence in government accountability.