On Tuesday, President Donald Trump launched a fierce accusation against Senator Adam Schiff (D-Calif.), claiming that Schiff committed mortgage fraud by misleading lenders about his primary residence being in Maryland instead of California. Trump’s assertion was that Schiff’s actions allowed him to secure a cheaper mortgage, describing the situation as a means to “rip off America.”
Senator Schiff, who has been a vocal critic of Trump, particularly during his presidency, dismissed the allegations as a baseless attempt at political retaliation. A spokesperson for Schiff emphasized that he has consistently been transparent about owning two homes and that he has conducted his mortgage arrangements in accordance with the law and counsel from House officials.
Trump’s claims referenced an investigation conducted by Fannie Mae’s “Financial Crimes Division.” However, a memorandum obtained by The Times indicates that the investigation did not explicitly accuse Schiff of mortgage fraud. Instead, it noted that investigators were seeking loan files and related documentation concerning Schiff’s residences at the request of the FHFA inspector general’s office.
The investigation revealed that Schiff identified both his Potomac, Maryland home and a unit in Burbank, California as his primary residence at various times. As a result, investigators suggested that Schiff and his wife, Eve, may have engaged in a “sustained pattern of possible occupancy misrepresentation” on their home loans between 2009 and 2020. Importantly, the memorandum did not assert that criminal activity had occurred, nor did it use the term “fraud.”
While maintaining his innocence, Schiff further insinuated that Trump’s accusation was a tactic to divert attention from pressing issues surrounding the administration’s failure to release investigatory records relating to child sex abuse by financier Jeffrey Epstein, who had previous ties to Trump.
Schiff characterized Trump’s claims as part of a pattern of political retaliation against perceived enemies, drawing a connection between the mortgage allegations and Trump’s Epstein-related controversies. “This is just Donald Trump’s latest attempt at political retaliation against his perceived enemies. So it is not a surprise, only how weak this false allegation turns out to be,” Schiff articulated on social media, emphasizing that the smear would not overshadow the administration’s Epstein records problem.
Schiff’s representatives reiterated his commitment to following the law, clarifying that the senator’s decision to maintain a residence in Maryland was a practical choice for a congressman representing California, enabling him to be close to his children. They noted that both lenders were fully aware of Schiff’s intention to live in both homes as he commuted between Washington and California.
In his post concerning Schiff, Trump was less focused on details and more on personal insults, labeling Schiff as a “scam artist” and “crook” for claiming his primary residence as being in Maryland while he is a congressman from California.
Over the years, Schiff, a former federal prosecutor, has been a staunch advocate against Trump, articulating arguments related to various controversial actions taken by the president, including allegations involving Russia, pressuring Ukraine for investigations, and incitement of the January 6 Capitol insurrection. He has also scrutinized Trump’s financial dealings alongside those of his family and appointees.
Schiff recently introduced legislation aimed at restricting politicians and their family members from profiting from digital currencies they create, indirectly implicating Trump and his family in such practices. He has consistently sought greater financial transparency from the Trump administration, alleging that many officials have failed to meet disclosure requirements.
Trump has faced allegations of financial misconduct for years, culminating in a civil fraud case where a New York judge ordered him to pay $355 million in penalties after determining that he and his business associates had inflated his net worth to deceive banks and insurers. Trump contends he was not in violation of any laws and is currently appealing the ruling.
In the backdrop of these events, Trump has continuously targeted Schiff personally, hurling accusations of hoaxes for political gain and suggesting he should face charges of treason. During a campaign event in California last year, Trump went further to label Schiff as “one of the sleaziest politicians in history.”
In response to the latest allegations of mortgage fraud, Schiff remarked, “Since I led his first impeachment, Trump has repeatedly called for me to be arrested for treason. So in a way, I guess this is a bit of a letdown.”
As a precaution against possible political retaliation from Trump, President Biden issued preemptive pardons to Schiff and fellow committee members involved in the investigation into Trump’s conduct related to January 6. Schiff expressed that he did not desire a pardon and rebuffed Trump’s claim that the pardons were “void” as yet another intimidation tactic.
Having originally been elected to the U.S. House of Representatives in 2000, Schiff currently divides his time between a two-story home in Potomac, Maryland, acquired in 2003, and a one-bedroom condominium in downtown Burbank, California, purchased in 2009.
In 2023, amid a challenging primary campaign for his Senate seat, CNN scrutinized Schiff’s mortgages, highlighting expert opinions that indicated his arrangements did not place him in legal jeopardy despite potentially raising difficult political questions. CNN’s reporting established that records reveal Schiff designated his Maryland residence as his primary dwelling, including during refinancing processes over the years. Furthermore, Schiff had also consistently claimed a California homeowner’s tax exemption for his Burbank property, amounting to approximately $70 in annual savings, while not claiming such an exemption in Maryland.
As tensions persist between Trump and Schiff, the allegations surrounding mortgage fraud serve as yet another flashpoint in their ongoing political rivalry, reflecting broader issues concerning transparency and accountability within the political arena.
image source from：latimes
