Trump official refers Rep. Eric Swalwell for a federal criminal probe over alleged mortgage fraud
WASHINGTON — A top housing official in President Donald Trump’s administration has referred California Democratic Rep. Eric Swalwell to the Justice Department for a potential federal criminal probe, based on allegations of mortgage and tax fraud related to a Washington, D.C., home, according to a person familiar with the referral.
He is the fourth Democratic official to face mortgage fraud allegations in recent months.
Bill Pulte, the director of the Federal Housing Finance Agency, alleged in a letter sent to Attorney General Pam Bondi on Wednesday that Swalwell may have made false or misleading statements in loan documents.
The matter has also been referred to the agency’s acting inspector general, this person said.
“As the most vocal critic of Donald Trump over the last decade and as the only person who still has a surviving lawsuit against him, the only thing I am surprised about is that it took him this long to come after me,” Swalwell said in a statement to NBC News.
The referral, according to the source, alleges several million dollars worth of loans and refinancing based on Swalwell declaring his primary residence as Washington.
It calls for an investigation into possible mortgage fraud, state and local tax fraud, and insurance fraud, as well as any related crimes.
The Justice Department did not immediately return a request for comment.
The move comes as Trump has publicly urged the prosecution of his political opponents.
Pulte previously sent criminal referrals to the Justice Department for two other prominent Democratic critics of Trump, New York Attorney General Letitia James and Sen. Adam Schiff, D-Calif., as well as Federal Reserve governor Lisa Cook — who was nominated by then-President Joe Biden — on allegations of mortgage fraud. All three have denied wrongdoing.
“Like James Comey and John Bolton, Adam Schiff and Lisa Cook, Letitia James and the dozens more to come — I refuse to live in fear in what was once the freest country in the world,” he added, referring to other Democrats and Trump critics who have been targeted by the administration. “Of course, I will not end my lawsuit against him. And I will not stop speaking out against the President and speaking up for Californians.”
Federal Housing Finance Agency Director Bill Pulte has referred several of Trump’s Democratic critics to the Justice Department over alleged mortgage fraud.Mark Schiefelbein / AP
NBC News previously reported that Bondi appointed a “special attorney” to probe the allegations against Schiff and James.
Swalwell and Trump have clashed repeatedly since Trump’s 2016 election, and he is among the president’s most outspoken critics in Congress.
A former prosecutor, Swalwell was one of the earliest Democrats to call for investigation into allegations of Russian meddling in the 2016 presidential election and played a role in both of Trump’s impeachment proceedings. He has said that he “fully” expects to be prosecuted by the Trump administration, telling CNN in September that he is “ready for it.”
Trump and his allies have countered Swalwell’s criticism with claims that he had ties to a suspected Chinese spy and has been compromised by a foreign intelligence agency. Swalwell denied those claims and a House Ethics Committee probe ended in 2023 with no findings of wrongdoing.
The Wall Street Journal reported this week that multiple Fannie Mae watchdogs who were removed from their jobs had been investigating whether Pulte improperly obtained mortgage records of several other Democratic officials, including James, citing “people familiar with the matter.”
The Federal Housing Finance Agency responded to the Journal report saying that anonymous sources in the article were “attempting to obstruct the criminal justice system by completely fabricating false and defamatory claims.”
Pulte told Bloomberg News over the summer that he has used public records and documents in the probes and defended the efforts.
“Is it mortgage fraud to say that you live in one area and not another area? Yes, it is mortgage fraud,” Pulte said. “We’re not going to be intimidated.”
Speaking on CNBC, Pulte said, “It doesn’t matter whether you’re Fed governor Cook or Joe Blow on the street, if you commit mortgage fraud, we are going to report it.”
Pulte has also drawn attention for promoting a 50-year mortgage concept, an idea that Trump defended in a Fox News interview Monday. The president said longer-term loans could “help a little bit” for Americans looking to buy homes. The idea has received some pushback, including on the right.
The Federal Housing Finance Agency referred James to the Justice Department in April over a Virginia home she listed as her primary residence, and she was indicted by the Justice Department last month over a 2020 mortgage tied to another Virginia property. She previously successfully sued Trump and his company over what her office said were fraudulent misrepresentations of his wealth and financial statements, before an appeals court tossed the $500 million penalty. Trump has appealed the verdict and has maintained that James is biased against him.
Schiff served as the lead impeachment manager in the House during Trump’s first impeachment trial in 2020. He remains under investigation in Maryland.
Trump, who sought to remove Cook over the allegations of mortgage fraud, took the effort to the Supreme Court in September. The high court announced Wednesday that it will hear arguments in the case early next year. Bank documents viewed by NBC News also appeared to undercut the administration’s claims of mortgage fraud.
Swalwell, in his statement to NBC News, also quoted author Mark Twain.
“As Mark Twain said, ‘Patriotism is supporting your country all the time, and your government when it deserves it,'” he said. “Mr. President, do better. Be Better.”
