Fox News reported, citing unnamed sources linked to the Trump administration, that Sen. Adam Schiff is the subject of a potential federal criminal investigation related to alleged mortgage fraud. The report claims the investigation is being handled by the U.S. Attorney’s Office in Maryland and stems from a criminal referral made by the Federal Housing Finance Agency (FHFA) to the Department of Justice.
According to the allegations described in the report, Schiff is accused of misrepresenting property information on mortgage and refinancing documents in order to obtain more favorable loan terms. The FHFA reportedly alleged that Schiff engaged in a “sustained pattern of possible occupancy misrepresentation” involving multiple loans backed by Fannie Mae.
The claims focus on two primary properties. One is a home in Montgomery County, Maryland, which Schiff and his wife purchased in 2003 and reportedly declared as their primary residence in various mortgage filings over several years, including refinancing applications in 2009, 2011, 2012, and 2013. At the time, Schiff was serving as a U.S. Representative for California.
The second property is a condominium in Burbank, California, which Schiff has also referred to as a primary residence in more recent political filings, including during his 2023 Senate campaign. The report alleges that Schiff and his wife used different residency designations at different times, raising questions about whether those declarations were consistent with mortgage requirements and tax rules.
The FHFA letter cited in the report also claims that Schiff may have benefited financially from declaring properties as primary residences, which typically carry lower interest rates and tax advantages compared to secondary homes. In one example cited, the Maryland property mortgage included a 30-year loan at 5.625% interest backed by Fannie Mae.
Additional claims referenced in the report include allegations that Schiff later claimed a homeowner tax exemption on the California condominium, resulting in reduced property taxes. A spokesperson quoted in earlier reporting stated that his primary residence was in California.
The allegations, if proven, could potentially involve federal statutes related to wire fraud, mail fraud, bank fraud, and false statements to financial institutions. However, as presented in the article, these are allegations tied to a referral and reported investigation, and no court charges or convictions are confirmed in the text.
Schiff’s office, according to the report, did not immediately respond to requests for comment regarding the allegations.
