Swalwell Sues Trump Official Over Mortgage Fraud Allegations

Rep. Eric Swalwell (D-CA) filed a lawsuit Tuesday targeting a Trump administration official, accusing him of orchestrating a politically motivated smear campaign involving mortgage fraud allegations tied to Swalwell’s $1.2 million Washington, D.C. home.

The lawsuit is aimed at Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), who referred Swalwell to the Department of Justice earlier this month for allegedly falsely claiming his D.C. property as his primary residence, which would violate loan terms and potentially amount to mortgage and tax fraud.

Swalwell insists that the accusations are “patently false” and that the home in question belongs to his wife, not him a distinction he says makes the issue irrelevant. He claims to have always maintained California residency while serving in Congress.

“Pulte’s referral to the Justice Department was not only a gross mischaracterization of reality,” the lawsuit claims. “It also represented a gross abuse of power that violated the law.”

Swalwell’s lawsuit, which also names Fannie Mae, Freddie Mac, and the Federal Housing Agency, alleges that Pulte misused federal databases to dig into the private mortgage records of political opponents a move Swalwell’s team calls “politically motivated retaliation” ordered by President Donald Trump.

Swalwell is not alone. He is now the fourth Democrat in recent months facing mortgage-related accusations. Others include:

• Sen. Adam Schiff (D-CA)

• New York Attorney General Letitia James

• Federal Reserve Governor Lisa Cook

Pulte reportedly referred all of them to Attorney General Pam Bondi, who has become increasingly active in pursuing corruption among high-profile Democrats. Bondi has not commented publicly on Swalwell’s case, but her team has already opened federal inquiries into similar allegations.

At the heart of the controversy is whether Swalwell improperly benefited from home loans and refinancing on his D.C. residence by misrepresenting it as his primary home a move that would allow him to qualify for preferential rates and federal-backed mortgage programs.

According to records reviewed by investigative outlets, Swalwell’s D.C. home was refinanced under terms meant for primary residents. Yet, the Congressman maintains in a sworn affidavit attached to his mortgage agreement that the D.C. property was not his primary residence.

“Swalwell has long claimed California as his legal residence,” the lawsuit states. “The D.C. home is his wife’s primary residence not his.”

While this might sound like legal hairsplitting, it could become the focal point of a criminal investigation if prosecutors determine the claim was deceptive or misused taxpayer-backed mortgage programs.

The lawsuit also accuses FHFA officials of coordinating a “targeted leak” to media outlets and conservative influencers to coincide with Pulte’s DOJ referral fueling what Swalwell describes as a Trump-led smear campaign.

“Details about the allegations appeared simultaneously across right-wing media and social platforms,” the complaint notes.

Swalwell claims these actions are part of Trump’s broader retribution strategy against political enemies as the 2026 election cycle heats up.

The lawsuit comes just one week after Swalwell announced his run for Governor of California a move many view as a long shot given his growing political baggage. The Democrat made the announcement on Jimmy Kimmel’s late-night show, pledging to fight “Trumpism” and focus on economic recovery.

Still, the timing of the lawsuit and the federal investigation could be politically disastrous.

• Swalwell is already a divisive figure nationally, known more for his failed presidential run and Trump impeachment crusades than any legislative victories.

• A mortgage fraud indictment if one materializes could cripple his gubernatorial campaign before it gets off the ground.

And in a time when Democrats are portraying Trump as the real threat to democracy, the optics of one of their own being investigated for financial fraud tied to federal housing programs could undermine their message.

Expect this case to escalate quickly especially as Bondi’s DOJ weighs its next move.

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