President Donald Trump accused Senator Adam Schiff of mortgage fraud on Tuesday, triggering a new round of political tension. Trump claimed that Fannie Mae’s financial crimes unit uncovered a sustained pattern of possible mortgage fraud by Schiff.
A senior administration official confirmed that the Justice Department has received a criminal case referral for potential prosecution. Schiff immediately denied any wrongdoing and labeled the claims as political revenge against him.
What are the details of the mortgage fraud accusations against Adam Schiff?
Trump’s post on Truth Social alleged Schiff misstated his primary residence to gain cheaper mortgage rates. According to a confidential Fannie Mae memo, Schiff allegedly misrepresented occupancy on five loans concerning homes in California and Maryland.
Documents show that Schiff’s Maryland property was at times designated as a primary residence and other times as a second home, raising questions about occupancy intent. Experts note that varying definitions of primary residence given by lenders and counties complicate the matter.
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Fannie Mae has been under government control since 2008 and now operates under the oversight of the Federal Housing Finance Agency.
How is the Justice Department responding to the criminal referral?
A senior administration official emphasized that whether prosecution occurs now depends entirely on the Justice Department. Attorney General Pam Bondi said she was unaware of the probe details and could not comment on the investigation.
Mortgage fraud prosecutions are common, but experts warn that targeting Trump’s critics raises concerns of political misuse of justice. Former U.S. attorney Barbara McQuade said such selective focus damages the credibility of legal institutions.
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Trump escalates attacks on political critics with mortgage fraud claims
The referral to the Justice Department represents a major breakthrough in the Trump administration’s campaign against vocal opponents. Schiff was a key figure in Trump’s impeachment proceedings and has remained a persistent critic.
The timing and focus on Schiff echo similar probes into Democratic states’ attorneys general, including New York’s Letitia James, reinforcing perceptions of politically charged investigations.
Schiff denies allegations and alleges political retaliation
Schiff dismissed the allegations on social media as ‘Donald Trump’s latest attempt at political retaliation.’ His spokesperson stressed lenders were fully aware of his home usage patterns, denying any false claims.
As this political and legal drama unfolds, the outcome could have lasting impacts on both the careers of those involved and public trust in the impartiality of criminal investigations.
The escalating conflict highlights the blurred line between political rivalry and legal scrutiny in contemporary American politics.
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