Emails show FHFA chief William Pulte urged a criminal probe of Rep. Eric Swalwell based on a Gateway Pundit article, part of a pattern targeting Democrats.
NEW YORK/WASHINGTON: A Republican agency head initiated a mortgage fraud probe of a Democratic congressman last month after reading a conservative news site.
Emails show Federal Housing Finance Agency (FHFA) director William Pulte referred allegations from The Gateway Pundit to his inspector general on November 12.
The article alleged Representative Eric Swalwell improperly listed his Washington, D.C. home as his “principal residence” on mortgage paperwork.
Swalwell, a Trump critic representing a Northern California district, has said he is a permanent resident of California.
Pulte’s email urged the inspector general to take action, “including – if warranted – engagement with the Department of Justice.”
A source said Pulte also referred the issue to the Justice Department the same day.
The FHFA and Pulte did not respond to requests for comment from Reuters.
Pulte has previously defended targeting mortgage fraud, saying it undermines the U.S. housing market.
Banks typically offer lower interest rates for primary residences compared to investment properties.
The referral fits a broader pattern of Pulte targeting prominent Democrats criticised by former President Donald Trump.
Other targets include New York Attorney General Letitia James, Senator Adam Schiff, and Federal Reserve Governor Lisa Cook.
“This has been part of the broader pattern of the politicization of the Department of Justice,” said former White House ethics lawyer Richard Painter.
A congressional watchdog will probe whether Pulte abused his authority by bypassing traditional investigative channels.
The FHFA inspector general normally handles fraud probes and refers cases to prosecutors.
The communications were obtained by legal group Democracy Forward and reviewed by Reuters.
Swalwell sued Pulte and the FHFA in late November for violating his privacy and retaliating against his free speech.
His lawsuit states he is a permanent California resident and disclaimed intent to occupy the D.C. home as primary.
“Trump and his team’s allegations against me are nonsense,” Swalwell told Reuters.
A federal judge has dismissed a fraud case against Letitia James that emerged from a Pulte referral.
Two grand juries subsequently declined to indict James, who has denied wrongdoing.
