Swalwell suit alleges abuse of power in Trump official’s mortgage probes

In a fiery rebuttal to allegations he’d criminally misrepresented facts in his mortgage documents, Rep. Eric Swalwell (D-Dublin) sued Federal Housing Finance Agency Director Bill Pulte on Tuesday — accusing him of criminally misusing government databases to baselessly target President Trump’s political opponents.

“Pulte has abused his position by scouring databases at Fannie Mae and Freddie Mac — two government-sponsored enterprises — for the private mortgage records of several prominent Democrats,” attorneys for Swalwell wrote in a federal lawsuit filed in Washington, D.C. “He then used those records to concoct fanciful allegations of mortgage fraud, which he referred to the Department of Justice for prosecution.”

They said Pulte launched his attack on Swalwell at a particularly inopportune time, just as Swalwell was launching his campaign for California governor.

Pulte’s attack, Swalwell’s attorneys wrote, “was not only a gross mischaracterization of reality” but “a gross abuse of power that violated the law,” infringing on Swalwell’s free speech rights to criticize the president without fear of reprisal, and violating the Privacy Act of 1974, which they said bars federal officials from “leveraging their access to citizens’ private information as a tool for harming their political opponents.”

Pulte, the FHFA and the White House did not immediately respond to requests for comment Wednesday.

Pulte has previously defended his work probing mortgage documents of prominent Democrats, saying no one is above the law. His referrals have exclusively targeted Democrats, despite reporting on Republicans taking similar actions on their mortgages.

Swalwell’s lawsuit is the latest counterpunch to Pulte’s campaign, and part of mounting scrutiny over its unprecedented nature and unorthodox methods — not just from targets of his probes but from other investigators, too, according to one witness.

In addition to Swalwell, Pulte has referred mortgage fraud allegations to the Justice Department against Sen. Adam Schiff (D-Calif.), New York Atty. Gen. Letitia James and Federal Reserve Governor Lisa Cook, who have all denied wrongdoing and suggested the allegations amount to little more than political retribution.

James was criminally charged by an inexperienced, loyalist federal prosecutor specially appointed by Trump in Virginia, though a judge has since thrown out that case on the grounds that the prosecutor, Lindsey Halligan, was illegally appointed. The judge also threw out a case against former FBI Director James Comey, another Trump opponent.

Cook’s attorneys slammed Pulte in a letter to the Justice Department, writing that his “decision to use the FHFA to selectively — and publicly — investigate and target the President’s designated political enemies gives rise to the unmistakable impression that he has been improperly coordinating with the White House to manufacture flimsy predicates to launch these probes.”

Schiff also has lambasted Trump and Pulte for their targeting of him and other Democrats, and cheered the tossing of the cases against James and Comey, calling it “a triumph of the rule of law.”

In recent days, federal prosecutors in Maryland — where Schiff’s case is being investigated — have also started asking questions about the actions of Pulte and other Trump officials, according to Christine Bish, a Sacramento-area real estate agent and Republican congressional candidate who was summoned to Maryland to answer questions in the matter last week.

Pulte has alleged that Schiff broke the law by claiming primary residence for mortgages in both Maryland and California. Schiff has said he never broke any law and was always forthcoming with his mortgage lenders.

Bish has been investigating Schiff’s mortgage records since 2020, and had repeatedly submitted documents about Schiff to the federal government — first to the Office of Congressional Ethics, then earlier this year to an FHFA tip line and to the FBI, she told The Times.

When Trump subsequently posted one of Schiff’s mortgage documents to his Truth Social platform, Bish said she believed it was one she had submitted to the FHFA and FBI, because it was highlighted exactly as she had highlighted it. Then, she saw she had missed a call from Pulte, and was later asked by Pulte’s staff to email Pulte “the full file” she had worked up on Schiff.

“They wanted to make sure that I had sent the whole file,” Bish said.

Bish said she was subsequently interviewed via Google Meet on Oct. 22 by someone from the FHFA inspector general’s office and an FBI agent. She then got a subpoena in the mail that she interpreted as requiring her to be in Maryland last week. There, she was interviewed again, for about an hour, by the same official from the inspector general’s office and another FBI agent, she said — and was surprised their questions seemed more focused on her communications with people in the federal government than on Schiff.

“They wanted to know if I had been talking to anybody else,” she said. “You know, what did I communicate? Who did I communicate with?”

Schiff’s office declined to comment. However, Schiff’s attorney has previously told Justice Department officials that there was “ample basis” for them to launch an investigation into Pulte and his campaign targeting Trump’s opponents, calling it a “highly irregular” and “sordid” effort.

The acting FHFA inspector general at the time Bish was first contacted, Joe Allen, has since been fired, which has also raised questions.

On Nov. 19, Rep. Robert Garcia (D-Long Beach) — the ranking Democrat on the House Oversight and Government Reform Committee — wrote a letter to Pulte denouncing his probes as politically motivated, questioning Allen’s dismissal and demanding documentation from Pulte, including any communications he has had with the White House.

Swalwell’s attorneys wrote in Tuesday’s lawsuit that he never claimed primary residence in both California and Washington, D.C., as alleged, and had not broken any laws.

They accused Pulte of orchestrating a coordinated effort to spread the allegations against Swalwell via a vast network of conservative influencers, which they said had “harmed [Swalwell’s] reputation at a critical juncture in his career: the very moment when he had planned to announce his campaign for Governor of California.”

They said the “widespread publication of information about the home where his wife and young children reside” had also “exposed him to heightened security risks and caused him significant anguish and distress.”

Swalwell said in a statement that Pulte has “combed through private records of political opponents” to “silence them,” which shouldn’t be allowed.

“There’s a reason the First Amendment — the freedom of speech — comes before all others,” he said.