Sen. Adam Schiff is under federal investigation for mortgage fraud after the Federal Housing Finance Agency sent a criminal referral to the Department of Justice, Newsmax reported. The California Democrat is accused of falsifying documents claiming two primary residences to obtain favorable terms on home loans and taxes.

Schiff certified that a residence he and his wife purchased in Potomac, Maryland, in 2003 was their primary residence. The purchase price was $870,000, and the Schiffs secured a $610,000 loan backed by Fannie Mae because they claimed it as their primary home.

Meanwhile, Schiff was claiming the same status on a condo he purchased in Burbank, California. At the time, he was representing the Golden State as a congressman, which would have required California residency.

When Schiff refinanced the Maryalynd home between 2009 and 2013, he once again made the Maryland home his primary residence, allowing for better interest rates and loan terms. He also certified the same in a 2011 affidavit. Meanwhile, the 65-year-old lawmaker was still benefiting from a $7,000 property tax break in California by simultaneously claiming the Burbank condo was his primary residence.

Possible Fraud

The FHFA referred the matter in May to the U.S. Attorney's Office. FHFA Director William Pulte sent a letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche stating that "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, according to Fox News.

"As regulators 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," Pulte added.

Indeed, a 2023 letter doubled down on the assertion that Schiff resided in California, where he received a 1% tax property tax break for living there full time. "Adam’s primary residence is Burbank, California, and will remain so when he wins the Senate seat," the letter said.

When CNN inquired about it that year, the California Democrat seemed to admit the alleged fraud. "Adam’s California and Maryland addresses have been listed as primary residences for loan purposes because they are both occupied throughout the year and to distinguish them from a vacation property," a letter from Schiff's spokesperson said at the time.

Now, Pulte believes 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." With the mounting evidence, the federal housing authority believes he may have committed bank fraud, mail fraud, wire fraud, and made false statements to financial institutions.

As a lawmaker, Schiff was certainly sophisticated enough to understand the difference between a primary residence and a secondary or vacation home when securing loans. If the allegations are factual, Schiff was peddling lies that were easy to verify as false, and he should suffer the legal consequences if he is found guilty.