Adam Schiff Faces Criminal Investigation Over Alleged Mortgage Fraud Following Federal Referral
Senator Adam Schiff (D–Calif.) is reportedly the subject of a criminal investigation into alleged mortgage fraud, according to a Trump administration source cited by Fox News. The revelation surfaced Tuesday evening on Fox News’ The Ingraham Angle, where host Laura Ingraham stated that the U.S. Attorney’s Office in Maryland is actively pursuing the case—a probe that could culminate in formal charges.
This development comes roughly a month after the Federal Housing Finance Agency (FHFA) allegedly issued a criminal referral to the Department of Justice. The referral accused Schiff of repeatedly falsifying bank documents and property records to secure more favorable loan terms—allegations that, if proven, would implicate him in years of financial misrepresentation.
At the heart of the controversy are two properties: a home in Potomac, Maryland, purchased by Schiff and his wife in 2003 for $870,000, and a condominium in Burbank, California. The Maryland property was secured with a $610,000 Fannie Mae-backed mortgage on a 30-year term at an interest rate of 5.625%, with Schiff certifying in writing that it would serve as his “primary and principal residence.”
The FHFA letter—sent in May by Director William Pulte to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche—asserts that Schiff reaffirmed this “primary residence” status multiple times during refinancing processes in 2009, 2011, 2012, and 2013, despite the fact that he was actively serving as a U.S. Representative for California. Fox News says it has obtained a copy of a 2011 affidavit in which Schiff explicitly certified the Maryland home as his primary residence.
The pattern allegedly continued until 2020, when Schiff finally designated the Maryland property as a secondary residence. During that same period, Schiff was also claiming a homeowner’s tax exemption on his Burbank condominium, declaring it his primary residence and securing a $7,000 reduction in property taxes.
The FHFA’s memo goes further, citing allegations from Fannie Mae’s financial crimes investigations unit that Schiff engaged in “a sustained pattern of possible occupancy misrepresentation” involving not just one but five Fannie Mae-backed loans. The practice, according to the FHFA, may have enabled Schiff to access lower interest rates and more favorable loan terms than would have been available for a second home or investment property.
In 2023, as Schiff campaigned for the U.S. Senate, a spokesperson maintained to CNN that both the California and Maryland addresses were considered primary residences “because they are both occupied throughout the year and to distinguish them from a vacation property.” Critics argue this explanation is inconsistent with standard mortgage rules, which typically require a single designated primary residence for lending purposes.
The FHFA’s letter points to potential violations of multiple federal statutes, including wire fraud, mail fraud, bank fraud, and making false statements to financial institutions. Pulte underscored the seriousness of the allegations, noting that such conduct—if substantiated—not only undermines public trust but also threatens “the safety and soundness of FHFA’s regulated entities and the stability of the U.S. mortgage market.”
Schiff’s office has not responded to multiple requests for comment from Fox News Digital. While no formal charges have yet been filed, the combination of a federal criminal referral, corroborating documentation, and an active U.S. Attorney’s Office investigation signals that the matter is far from a political skirmish—it may well evolve into a full-scale legal battle with consequences reaching beyond Schiff’s political career.