mortgage

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.

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US Fed Governor Cook offers detailed defence in mortgage fraud case | Business and Economy News

Cook’s lawyer says the criminal referrals against her ‘fail on even the most cursory look at the facts’.

United States Federal Reserve Governor Lisa Cook’s lawyer has offered the first detailed defence of mortgage applications that gave rise to President Donald Trump’s move to fire her, saying apparent discrepancies in loan documents were either accurate at the time or an “inadvertent notation” that couldn’t constitute fraud given other disclosures to her lenders.

Cook has denied wrongdoing, but until Monday, neither she nor her legal team had responded in any detail to the fraud accusations first made in August by Federal Housing Finance Agency (FHFA) Director William Pulte.

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She has challenged her removal in court, and the US Supreme Court has for now blocked Trump’s firing attempt and will hear arguments in the case in January.

A Department of Justice spokesperson said the department “does not comment on current or prospective litigation, including matters that may be an investigation”.

In a letter to US Attorney General Pam Bondi seen by the Reuters news agency, Cook’s lawyer Abbe Lowell said the criminal referrals Pulte made against her “fail on even the most cursory look at the facts”.

The two separate criminal referrals Pulte made fail to establish any evidence that Cook intentionally deceived her lenders when she obtained mortgage loans for three properties in Michigan, Georgia and Massachusetts, the letter said.

Lowell also accused Pulte of selectively targeting Trump’s political enemies while ignoring similar allegations against Republican officials, The Wall Street Journal reported.

Lowell said other recent conduct by Pulte “undercut his criminal referrals concerning Governor Cook”. That behaviour includes the recent dismissal of the FHFA’s acting inspector general and several internal watchdogs at Fannie Mae, one of the mortgage-finance giants under FHFA control.

The letter also cited a recent article by Reuters that said the White House ousted FHFA acting Inspector General Joe Allen right after he tried to provide key discovery material to federal prosecutors in the Eastern District of Virginia who are pursuing an indictment against New York Attorney General Letitia James.

James was charged with bank fraud and lying to her lender also after Pulte made a referral to the Justice Department. She has pleaded not guilty, and she is seeking a dismissal of the case on multiple grounds, including vindictive and selective prosecution.

Cook’s case is being handled in part by Ed Martin, the Justice Department’s pardon attorney, whom Bondi named as a special assistant US attorney to assist with mortgage fraud probes into public figures.

The case is still being investigated, and no criminal charges have been brought. The department is also separately investigating Democratic California Senator Adam Schiff, also at Pulte’s request.

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Trump administration working on 50-year mortgage to increase home ownership

A for sale sign is seen outside a home in Arlington, Virginia. On Monday, the Trump administration confirmed it is working on a 50-year fixed-rate mortgage to pull more buyers into the housing market. File Photo by Alexis C. Glenn/UPI | License Photo

Nov. 10 (UPI) — The Trump administration is working on a plan to introduce a 50-year fixed-rate mortgage with the goal of making homeownership more affordable for millions of Americans, as some analysts warn of hidden costs.

Federal Housing Finance Agency Director Bill Pulte confirmed the report, saying the proposed 50-year loan would lower monthly payments to bring more buyers into the housing market.

“Thanks to President Trump, we are indeed working on The 50-year Mortgage — a complete game changer,” Pulte wrote Saturday in a post on X. Trump has compared the plan to the 30-year mortgage from President Franklin D. Roosevelt‘s New Deal.

“We hear you. We are laser focused on ensuring the American Dream for young people and that can only happen on the economic level of home buying,” Pulte added. “A 50-year mortgage is simply a potential weapon in a wide arsenal of solutions that we are developing right now: stay tuned.”

The housing market has grown stagnate over the past three years as younger Americans are unable to afford the payments that come with a 30-year fixed rate at more than 6% interest. To add to that, inventory is depleted as homeowners are locked in to their houses with the lower interest rates of the COVID-19 economy.

Both Pulte and Trump have blamed Federal Reserve Chairman Jerome Powell for hiking interest rates to curb inflation and then keeping rates “artificially high.”

While a 50-year mortgage would lower monthly payments, it would also prevent homeowners from building equity as quickly. Over the life of the loan, the amount of interest paid to lenders would be 40% higher, according to analysts who also warn about the need for congressional approval.

“Fannie and Freddie could establish a secondary market for 50-year mortgages in advance of policy changes. They even could buy mortgages for their retained portfolios,” Jaret Seiberg, a financial services and housing policy analyst at TD Cowen, wrote in a note to clients.

“Yet this would not alter the legal liability for lenders. It is why we believe lenders will not originate 50-year mortgages absent qualified mortgage policy changes,” Seiberg said, adding congressional approval could take up to a year to meet the definition of a qualified mortgage under the Dodd-Frank Act.

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