Investigation into high-ranking Democrat Adam Schiff arises following Trump's labeling of him as a 'fraudster'
California Senator Adam Schiff Under Federal Criminal Investigation for Alleged Mortgage Fraud
California Senator Adam Schiff is currently under a federal criminal investigation by the U.S. Attorney's Office in Maryland for alleged mortgage fraud involving falsified bank documents and property records to secure favorable loan terms. The investigation centers on Schiff claiming two different properties—his Maryland home and a condominium in Burbank, California—as his primary residence at different times, which may have impacted mortgage payments and property tax exemptions.
The Federal Housing Finance Agency (FHFA) sent a criminal referral to the Department of Justice (DOJ) alleging Schiff engaged in a "sustained pattern of possible occupancy misrepresentation" on multiple loans from 2003 to 2019. FHFA's regulator role over Fannie Mae and Freddie Mac prompted serious concern over the alleged mortgage fraud's threat to mortgage market stability.
The investigation into Schiff is part of a broader DOJ scrutiny into political figures seen as adversaries of former President Donald Trump. A special prosecutor, Ed Martin, has been appointed to assist with the mortgage fraud investigation into Schiff alongside other Trump political opponents.
Senator Schiff has denied wrongdoing, stating that he claimed both homes as primary residences because they are occupied throughout the year and to distinguish them from vacation properties; he also characterizes the investigation as politically motivated retaliation. Schiff’s office has not issued detailed public comments on the ongoing investigation as of the latest updates.
In 2003, Schiff and his wife purchased a Maryland home for $870,000 with a $610,000 mortgage. The mortgage rate was set at 5.625 percent over 30 years, on the basis that it was their primary and principal residence. However, Schiff declared a home in Montgomery County, Maryland, as his primary residence in a 2011 affidavit, but a condominium in Burbank, California, is also listed as his primary residence as recent as 2023.
The internal memo within Fannie Mae, the lender responsible for the questionable loans, stated an investigation has been ongoing amid concerns Schiff 'engaged in a sustained pattern of possible occupancy misrepresentation on 5 Fannie Mae loans'. The condo in Burbank, California, has at times been listed as a 'primary residence', but its 691 square foot, 1-bedroom unit appears unsuitable for a family of four, raising doubts about their true occupancy intent.
Trump has accused Schiff of orchestrating an 'American Tragedy' by investigating his son Donald Trump Jr.'s phone records in 2019 amid concerns about the origin of a meeting with Russians held in Trump Tower three years prior. Each of the loans involved have since been paid off in full.
The status is that of an active and developing federal criminal investigation into Senator Schiff's mortgage dealings initiated by DOJ following FHFA allegations, with no charges filed publicly yet. Schiff maintains his innocence and argues he is being persecuted by the Trump administration as political retribution for his involvement in opposing the family over the years. Neither of Schiff's homes is considered a 'vacation' property.
- The Federal Housing Finance Agency (FHFA) sent videos and news regarding the mortgage fraud investigation of California Senator Adam Schiff to various media outlets, highlighting his alleged misrepresentation of property ownership to secure favorable loan terms.
- The investigation into Senator Schiff's mortgage fraud has expanded to include other political figures who are considered adversaries of former President Donald Trump, as part of a broader crime-and-justice news focus on public figures.
- General-news coverage across multiple platforms has been discussing the political implications of the mortgage fraud investigation into California Senator Adam Schiff, particularly its potential impact on the stability of the mortgage market and questions about the intent behind his property designations.
