Report: Sen. Adam Schiff Under Federal Investigation for Alleged Mortgage Fraud

Sen. Adam Schiff (D-Calif.) is under federal criminal investigation for alleged mortgage fraud, a Trump administration source told Fox News Tuesday night. The probe, being handled by the U.S. Attorney’s Office in Maryland, is focused on whether Schiff falsified documents to obtain more favorable home loan terms.

Fox News host Laura Ingraham first revealed the investigation, citing a source with direct knowledge of the case.

The investigation follows a criminal referral made last month by the Federal Housing Finance Agency (FHFA) to the Department of Justice. According to the referral, Schiff allegedly submitted false bank records and property documents on multiple occasions to benefit from better mortgage conditions.

One of the key documents cited is a 2011 affidavit signed by Schiff, in which he claimed that a property in Montgomery County, Maryland, was his primary residence,even as he continued serving in Congress representing California.

Schiff also owns a condo in Burbank, California, which he has likewise listed as his primary residence, including during his 2023 campaign for U.S. Senate.

Schiff’s office has not commented on the investigation despite requests from Fox News Digital.

In May, FHFA Director William Pulte sent a letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche outlining the alleged misconduct.

“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 also reported that Pulte later received a memo from Fannie Mae’s financial crimes division indicating that Schiff had allegedly engaged in “a sustained pattern of possible occupancy misrepresentation” across five different loans.

According to the letter, Schiff and his wife bought the Potomac, Maryland, property in 2003 for $870,000. They obtained a Fannie Mae-backed loan for $610,000 at a 5.625% interest rate, declaring the home to be their primary and principal residence.

That claim was reaffirmed repeatedly in refinancing documents filed in 2009, 2011, 2012, and 2013, despite Schiff holding elected office in California at the time.

Fox News obtained a copy of the 2011 affidavit in which Schiff again certified that the Maryland property was his primary residence.

Pulte noted that the Schiffs did not list the Maryland house as a secondary residence until 2020.

Meanwhile, Schiff was also claiming the Burbank condo as his primary residence in California, taking a homeowner’s exemption that lowered his property taxes by $7,000. That exemption is only available for one’s principal residence.

A 2023 spokesperson for Schiff told CNN, “Adam’s primary residence is Burbank, California, and will remain so when he wins the Senate seat.”

Pulte wrote that Schiff’s conduct appears to violate multiple federal statutes, including those prohibiting wire fraud, mail fraud, bank fraud, and making false statements to financial institutions. He added that 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.”