US President Donald Trump on Tuesday accused Democratic Senator Adam Schiff of mortgage fraud alleging that he misrepresented his primary residence to secure more favourable loan terms.
In a post on Truth Social, Trump said that the Federal National Mortgage Association's (Fannie Mae) financial crime unit uncovered a “sustained pattern of possible mortgage fraud” by Schiff.
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A senior administration official added that a decision on prosecution now lies with the justice department and warned, “this is just the beginning, unfortunately,” for Schiff.
Senator Schiff has denied the accusations and called them politically motivated.
“This is just Donald Trump’s latest attempt at political retaliation against his perceived enemies,” Schiff posted on X. “So it is not a surprise, only how weak this false allegation turns out to be.”
Schiff's office clarified that lenders were informed of his regular use of both his California and Washington residences and neither was considered a vacation property.
Public documents related to Schiff’s mortgage and property in Montgomery County, Maryland shows Schiff designated one of his homes as a second residence in 2020, although earlier filings listed it as his primary home.
A confidential memo from Fannie Mae, obtained by The Washington Post, claims that Senator Schiff gave incorrect information about how he used five properties when applying for home loans. According to the memo, one of the homes, a one-bedroom condo in Burbank, California was listed as his main residence, even though it did not seem suitable for a family of four. The memo also noted that all five loans have now been fully repaid.
Barbara McQuade, a former US attorney, criticised Trump's accusations. She said that while mortgage fraud is commonly investigated, the recent focus on Trump’s political opponents is concerning. McQuade asserted that being a public official doesn’t exempt anyone from the law and by targeting critics of Trump, the administration risks damaging the justice department’s credibility.
This incident follows a similar investigation involving New York Attorney General Letitia James, a prominent critic of Trump. James, along with other Democratic state attorneys general, has filed several lawsuits against the Trump administration.
Attorney General Pam Bondi on Tuesday said she had just learned of Trump’s Truth Social post and could not confirm whether Schiff was subjected to a criminal investigation.
Schiff had previously led Trump’s impeachment proceedings while serving in the House
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