Summary: FHFA Director William Pulte forwarded a Gateway Pundit article to the agency's acting inspector general and the DOJ on Nov. 12, prompting a mortgage-fraud inquiry into Representative Eric Swalwell. Critics say the move is part of a pattern of politically charged referrals by Pulte that bypass standard FHFA investigative channels. Swalwell has sued Pulte and the agency, denying wrongdoing and asserting he remains a permanent California resident. A congressional watchdog will probe whether Pulte abused his authority.
Trump Appointee William Pulte Referred Gateway Pundit Tip, Sparking Mortgage Fraud Probe Into Rep. Eric Swalwell
U.S. Representative Eric Swalwell (D-CA) attends a House Judiciary Committee hearing with FBI Director Kash Patel (not pictured), on Capitol Hill in Washington, D.C., U.S., September 17, 2025. REUTERS/Annabelle Gordon
NEW YORK/WASHINGTON, Dec 20 (Reuters) - A mortgage-fraud inquiry into Democratic Representative Eric Swalwell began after Federal Housing Finance Agency (FHFA) Director William Pulte, a Trump appointee, forwarded an article from the conservative site The Gateway Pundit to the FHFA acting inspector general and urged possible engagement with the Department of Justice, according to government emails reviewed by Reuters.
On Nov. 12, The Gateway Pundit published a piece alleging that Swalwell had listed his Washington, D.C., residence as his "principal residence" on mortgage paperwork. Swalwell, who represents a Northern California district and is running for governor of California, has maintained he is a permanent California resident. Loan documents reviewed by Reuters show the Washington property was marked as his principal residence.
An email reviewed by Reuters shows Pulte sent a link to the article to the FHFA acting inspector general that day and urged the office to take "all appropriate action, including — if warranted — engagement with the Department of Justice regarding potential mortgage, tax or other fraud related to the representations made in mortgage documents or other items in the below article." A source familiar with the matter said Pulte also referred the matter directly to the Justice Department the same day.
Why It Matters
Banks typically offer lower interest rates for owner-occupied principal residences than for vacation or investment properties. Misstating residency on mortgage paperwork can lead to different loan terms and, in some cases, criminal investigations.
Referral Fits Broader Pattern
Critics say the Swalwell referral resembles other referrals Pulte made about public officials, including New York Attorney General Letitia James, Senator Adam Schiff and Federal Reserve Governor Lisa Cook. Ethics experts and some lawmakers have accused Pulte of politicizing enforcement by bypassing the FHFA's normal investigative channels.
"This has been part of the broader pattern of the politicization of the Department of Justice. It’s highly unethical to try to go after political enemies like this," said Richard Painter, who served as White House ethics lawyer under President George W. Bush. "It's an abuse of public office and an abuse of public trust."
The FHFA's Office of Inspector General typically handles mortgage-fraud allegations and refers matters to prosecutors when warranted. Communications between Pulte and the FHFA OIG were obtained by Democracy Forward and reviewed by Reuters.
Legal Response And Outcomes
In late November, Swalwell sued Pulte and the FHFA, alleging violations of privacy in retrieving mortgage records and retaliation for exercising his First Amendment rights. In his complaint, Swalwell asserted he is a permanent California resident and attached a sworn affidavit to his mortgage agreement in which he "disclaimed any intent to occupy the District of Columbia home as his primary residence." Swalwell told Reuters, "Trump and his team's allegations against me are nonsense. Pulte’s newly revealed conduct only reinforces why I brought this case. I intend to see it through."
Separately, a federal judge dismissed a fraud case tied to Pulte's referral of Letitia James, and two subsequent grand juries declined to indict her. James and others targeted by Pulte's referrals have denied wrongdoing.
The FHFA and Pulte did not respond to requests for comment from Reuters. A Justice Department spokesperson declined comment. The Gateway Pundit contributor who wrote the article said he was "happy to see more coverage" of the issue.
