DOJ Reviews Handling of Mortgage-Fraud Inquiry Linked to Sen. Adam Schiff; Questions Raised About FHFA Director and DOJ Official

The Justice Department is reviewing how federal officials handled a mortgage-fraud inquiry focused on Sen. Adam Schiff, including whether individuals who said they were acting at the direction of two Trump administration officials played a role in advancing the allegations. Maryland prosecutors conducting the inquiry have questioned a GOP congressional candidate and served subpoenas seeking records of communications with people who claimed to be working for or at the direction of FHFA Director Bill Pulte or Justice Department official Ed Martin.

Investigators interviewed Christine Bish, a California real-estate agent and Republican candidate who has promoted allegations about mortgages tied to Schiff, who owns homes in California and Maryland. Bish told investigators she had prepared to discuss her yearslong work on mortgage records related to Schiff, but said the questioning focused primarily on whether she had communicated with Pulte or Martin.

"I expected to be asked questions, a lot of questions, about, 'How did you come about investigating Adam Schiff and what were your findings?'" Bish said. "What they wanted to know was if I was in communication with Ed Martin or Director Pulte — and I was not."

Bish said she repeatedly tried to return the interview to the mortgage allegations against Schiff but felt investigators were concentrating on potential contacts between her and the two officials. The subpoena issued to Bish seeks any communications with Pulte or anyone "claiming to be working at his behest," including anyone purporting to be his chief of staff. It also seeks communications with anyone "claiming to be working for or at the direction of" the Justice Department or "anyone claiming to be acting at the direction or request of" Martin.

Focus on How the Inquiry Was Pursued

The shift in emphasis — from reviewing the underlying mortgage allegations to examining how the investigation was handled — draws new scrutiny to efforts by Pulte and Martin to press probes of political opponents of former President Donald Trump. Critics say those efforts have been marked by missteps, sensational claims that were quickly rebutted, and concerns about whether nonpublic mortgage data was improperly accessed when building some of the allegations.

According to a person familiar with Bish's interactions who spoke on the condition of anonymity, Robert Bowes — who worked in the first Trump administration and is named on the subpoena — contacted Bish multiple times and said he was acting on Pulte's behalf. The person said Bowes asked her to investigate mortgages of several individuals and at one point urged her to serve as a source for a national outlet preparing a negative story about mortgages tied to Deputy Attorney General Todd Blanche. Bowes did not provide comment when contacted.

Broader Web of Referrals and Probes

In August, the Justice Department appointed Ed Martin as a special prosecutor to assist with investigations that included referrals involving Schiff and New York Attorney General Letitia James. Prosecutors have also issued subpoenas in a mortgage-fraud inquiry involving Federal Reserve Governor Lisa Cook, and the Federal Housing Finance Agency has referred Rep. Eric Swalwell to the Justice Department. All four public officials named in those referrals deny wrongdoing.

The Maryland-led review into Schiff's matter is ongoing and officials have not publicly disclosed its status. Separate enforcement action tied to similar referrals produced criminal charges recently in Virginia against Letitia James; she has pleaded not guilty and her lawyers have criticized the conduct of investigators in court filings.

Spotlight on Bill Pulte and FHFA Conduct

Since taking the helm of the Federal Housing Finance Agency, 37-year-old Bill Pulte — heir to a homebuilding fortune — has raised the profile of the normally staid regulator by publicly criticizing several longtime political figures and by pushing unusual policy proposals, including advocating recently for a 50-year mortgage to expand homeownership. The idea was widely criticized for the long-term cost implications for borrowers.

Pulte has also asserted direct control over Fannie Mae and Freddie Mac and overseen the removal of ethics officials and senior executives at the two government-sponsored enterprises. Some of those ousted had been examining whether Pulte or his allies accessed confidential mortgage data when making criminal referrals. Separately, other executives raised concerns about a Pulte associate sharing confidential pricing data with a competitor.

In a letter to the attorney general, Abbe Lowell, counsel for some targets of the referrals, urged investigators to scrutinize Pulte's conduct, arguing the alleged irregularities could undermine the basis for criminal referrals he initiated.

What’s Next

The Justice Department declined to comment on the review. Investigators appear focused not only on the merits of mortgage-related allegations against public figures, but on the way those allegations were developed and who may have prompted or assisted in advancing them. The outcome of the departmental review could determine whether the handling of the probe, and the roles of Pulte, Martin and any intermediaries, warrants further inquiry or referrals of its own.