WASHINGTON, D.C. – Federal regulators have issued a criminal referral to the Department of Justice involving U.S. Senator Adam Schiff (D-CA), citing allegations that he may have misrepresented his primary residence on multiple mortgage applications dating back more than a decade.
The referral was submitted by the Federal Housing Finance Agency (FHFA), the independent regulator overseeing mortgage giants Fannie Mae and Freddie Mac. The core issue centers on – who President Trump likes to call Shifty Schiff’s – past real estate filings, in which he reportedly claimed a Maryland property as his primary residence while also listing a California condominium – located in his congressional district – as his principal residence for tax and political purposes.
According to internal reviews, the FHFA identified at least five mortgage transactions involving the Maryland home, some of which may have secured lower rates or more favorable loan terms based on its designation as a primary residence. The referral reportedly outlines inconsistencies in documentation dating back to 2009, with the last noted discrepancy occurring in 2020, when the Maryland property’s status was changed to “second home.”
While dual-residency arrangements are not uncommon for members of Congress, the FHFA’s action signals concern that Schiff may have knowingly misrepresented the property’s use for financial gain. The agency’s referral does not constitute a finding of guilt but indicates that investigators believe the facts merit further review by federal prosecutors.
Schiff has not been formally charged with any wrongdoing. His office responded to prior reports on the matter by stating that lenders were fully aware of his bi-coastal living arrangement and that the mortgages were processed with proper disclosures. Legal analysts note that even if technical misstatements occurred, statutes of limitation or intent requirements may complicate any potential prosecution.
The criminal referral was reportedly filed in recent days and became public following a statement from former President Donald Trump, who cited the matter on social media while calling for Schiff to be “brought to justice.” While the political reaction has been swift, the Department of Justice has not commented on whether it will open an investigation or pursue charges.
This is not the first time Schiff’s real estate holdings have drawn attention. In 2023, news outlets reported on his dual use of the Maryland and California properties, raising questions about possible tax or mortgage benefits. At the time, real estate experts stated that such arrangements, while potentially questionable, are not necessarily illegal unless false statements were knowingly made on federally backed loan applications.
As of now, the FHFA’s referral marks the most serious development in the matter to date, moving the issue from the realm of public scrutiny to potential legal action. DOJ officials have not announced a timeline for reviewing the referral or determining next steps.
Schiff, who was elected to the U.S. Senate in 2024 following a long tenure in the House, remains an influential figure in national politics. Any future legal proceedings stemming from this referral would likely carry significant political and legal implications as the 2026 election cycle approaches.
Timeline: Mortgage Fraud Allegations Involving Sen. Adam Schiff
- 2003 – Adam Schiff and his wife purchase a home in Maryland after he begins serving in Congress. The property is used during the legislative calendar while maintaining a residence in California.
- 2009–2020 – Schiff obtains multiple mortgages and refinances on the Maryland home. According to reports, at least five of these transactions list the Maryland property as his primary residence—a designation that may qualify for better loan terms. Simultaneously, he claims a California condo as his principal residence for tax and political purposes.
- 2023 (Spring) – Initial questions about dual residency emerge in media reports, including coverage by CNN and The Daily Beast. Analysts note that the arrangement may not be illegal, but could raise flags if lenders were misled about property usage.
- October 2024 – A formal ethics complaint is filed with Congress by a private real estate investigator, citing possible misrepresentation and suggesting an investigation into Schiff’s mortgage documentation.
- Early July 2025 – Internal sources at Fannie Mae’s Financial Crimes Unit identify discrepancies across multiple mortgage files tied to Schiff’s Maryland property. Findings are forwarded to the Federal Housing Finance Agency (FHFA).
- July 15, 2025 – FHFA files a criminal referral to the Department of Justice, alleging that Schiff may have misrepresented his primary residence in order to secure favorable mortgage terms. The DOJ has not yet confirmed whether it will open a formal investigation.
- Same Day – Former President Donald Trump publicly references the referral, calling for legal action. The story gains national attention but remains under legal review.
Q&A: Mortgage Fraud Allegations Against Sen. Adam Schiff
Q: What is Adam Schiff being accused of?
A: Schiff is accused of misrepresenting his Maryland property as his primary residence on multiple mortgage applications between 2009 and 2020. The claim is that this may have enabled him to obtain better mortgage terms on federally backed loans, while also claiming a California residence for tax and political purposes.
Q: Who made the criminal referral, and why?
A: The Federal Housing Finance Agency (FHFA), which regulates mortgage entities like Fannie Mae and Freddie Mac, submitted the referral to the Department of Justice. It followed a review of Schiff’s mortgage documents by Fannie Mae’s Financial Crimes Unit, which flagged inconsistencies in how the Maryland property was categorized.
Q: What makes this a potential crime?
A: On federally backed mortgages, borrowers must truthfully disclose whether a property is a primary residence, second home, or investment. Misrepresentation can lead to charges of mortgage fraud if the borrower knowingly provided false information to secure favorable terms.
Q: Is Schiff being charged with a crime?
A: No. As of now, the DOJ has only received the referral and has not announced any investigation, charges, or conclusions. A criminal referral is not a determination of guilt; it simply asks prosecutors to review whether the facts warrant further legal action.
Q: How did this issue come to public attention?
A: Initial media scrutiny over Schiff’s dual-residence status surfaced in 2023. In 2024, a private real estate investigator filed a congressional ethics complaint. The matter escalated in July 2025, when the FHFA formally referred the case to the DOJ.
Q: Has Schiff responded to the allegations?
A: In earlier statements, Schiff’s office said that both lenders were aware of his bi-coastal living arrangement and that no false information was provided. He has not yet publicly commented on the criminal referral as of July 15, 2025.
Q: Could this affect his Senate position?
A: Not directly. A criminal referral does not carry legal or political penalties on its own. However, if the DOJ opens a case and finds wrongdoing, it could lead to charges that might carry legal consequences and impact his political standing.
Q: What’s the next step?
A: The Department of Justice must decide whether to act on the referral. This could mean opening an investigation, requesting more information, or declining to pursue the matter. No timetable for a decision has been made public.
