Rep. Eric Swalwell (D-Calif.) finds himself under scrutiny as the Federal Housing Finance Agency (FHFA) has made a significant referral to the U.S. Department of Justice. This referral centers on allegations of mortgage and tax fraud linked to Swalwell’s $1.2 million home in Washington, D.C. The FHFA’s detailed investigation challenges Swalwell’s claim that his six-bedroom residence is his primary home—a claim that could have secured him more advantageous loan conditions and tax benefits.
According to the FHFA, discrepancies emerged during an internal review conducted by their Office of Inspector General. These discrepancies suggest that Swalwell might have misled lenders by designating his property, located in the Eckington neighborhood, as his primary residence. If these claims are substantiated, they could lead to serious charges including mortgage fraud, tax fraud, and insurance fraud.
In a statement, FHFA Director Bill Pulte emphasized accountability, declaring, “It doesn’t matter whether you’re Fed governor Cook or Joe Blow on the street; if you commit mortgage fraud, we are going to report it.” His remarks underscore a commitment to enforcing the law uniformly, regardless of an individual’s standing. Pulte pointedly stated, “Is it mortgage fraud to say that you live in one area and not another area? Yes, it is mortgage fraud.”
The FHFA’s referral letter, sent to Attorney General Pam Bondi, has not been publicly released in full. However, sources within the agency indicate that it cites inconsistencies in public mortgage filings and sworn loan documents related to the D.C. home’s occupancy status. The investigation revolves around a renovated Victorian bungalow, purchased by Swalwell in 2020. By certifying it as his primary residence, Swalwell may have accessed lower interest rates and federal mortgage exemptions designed for owner-occupied properties, which are not available for secondary or rental spots.
In response to the referral, Swalwell characterized it as politically motivated, stating, “The only thing I am surprised about is that it took him this long to come after me.” He dismisses the allegations as “political harassment,” vowing to pursue his legal actions against Trump. His staunch response indicates a belief that his outspoken criticism of Trump has made him a target.
This referral is part of a trend under Pulte, targeting various prominent Democrats for alleged misrepresentation in loan documents. Swalwell now joins a list that includes New York Attorney General Letitia James and Senator Adam Schiff, facing serious allegations of misleading federal entities regarding mortgage applications.
Swalwell’s career has already faced significant challenges. He was notably removed from the House Intelligence Committee in 2023 amid concerns regarding his past associations with a suspected Chinese operative linked to his 2014 campaign. This move by then-Speaker Kevin McCarthy raised further questions about Swalwell’s integrity, especially concerning sensitive national security matters.
The criminal referral could have serious implications for Swalwell’s future. While it does not guarantee prosecution, it signals a serious inquiry into his financial dealings. The DOJ has yet to make any public comment about the potential for a criminal case.
Swalwell’s situation has ignited discussions among supporters and detractors alike. A social media post announcing the referral captured attention, combining the seriousness of the allegations with a sharp political jab about Swalwell’s ties to Fang Fang, a former Chinese operative: “Fang Fang’s boyfriend f***ed around, and now he’s about to find out.”
This isn’t the first time Swalwell’s federal benefits have come under scrutiny. Previous investigations have questioned whether members of Congress, particularly from areas with high living costs, exploit federal residence norms for personal gain. The FHFA has ramped up its enforcement regarding residency claims as part of a broader initiative to combat fraud affecting federally backed mortgages. This move reflects an urgent call for transparency in how lenders and borrowers navigate the rules surrounding home loans.
Investigators are now dissecting Swalwell’s claims, particularly whether he continued to classify the property as a primary residence while spending significant time in California or renting it out. Under federal guidelines, any misrepresentation regarding how a property is used, whether for living, renting, or business, can lead to severe legal repercussions.
The FHFA has made it clear that referrals for criminal charges may arise even in cases where prior investigations did not yield action. The agency has emphasized a commitment to address inconsistencies in housing documentation methodically; Letitia James’ referral in April led to her indictment after further scrutiny of her records revealed discrepancies involving insurance.
Questions remain about the basis of Swalwell’s referral. Was it merely grounded in public filings, or did additional evidence surface to fortify these claims? While no formal indictment has been handed down yet, this referral signals a drastic shift in the scrutiny Swalwell faces, especially given his public persona and critique of conservative policies. His social media presence has kept him in the spotlight, yet the unfolding investigation may alter public perception.
Pulte’s commitment to these investigations suggests that the FHFA is serious about upholding integrity in federal housing regulations. A spokesperson for the agency reiterated, “If you commit mortgage fraud, you will be investigated,” emphasizing a resolve to enforce laws without bias.
As the case stands, Swalwell faces serious allegations while fulfilling one of the nation’s crucial legislative roles. This referral from the FHFA adds a significant layer to his ongoing legal and political challenges. For now, it rests with federal prosecutors to determine the next steps—whether to present the case to a grand jury, pursue charges, or ultimately decide to close it. The spotlight is on Swalwell, and the integrity of his actions is under intense examination.
"*" indicates required fields
