Swalwell Withdraws Lawsuit Against FHFA Director Bill Pulte Amid Residency Scrutiny

SACRAMENTO, California — Rep. Eric Swalwell has withdrawn the lawsuit he filed in November against Bill Pulte, the director of the Federal Housing Finance Agency (FHFA). Swalwell had alleged that Pulte weaponized mortgage-fraud investigations to punish political opponents by obtaining the congressman's private mortgage records in retaliation for his criticism of President Donald Trump.

In the November complaint, Swalwell said Pulte's actions amounted to viewpoint-based retaliation in violation of the First Amendment and sought damages as well as the withdrawal of a criminal referral. Pulte, in turn, referred Swalwell to the Department of Justice, alleging mortgage and tax irregularities tied to a property in Washington — allegations Swalwell has strongly denied.

"There’s a reason the First Amendment — the freedom of speech — comes before all others," Swalwell said shortly after filing the suit.

The decision to drop the lawsuit arrives as Swalwell faces heightened public and legal scrutiny over his eligibility to run for California governor. Rival Tom Steyer has questioned whether Swalwell actually resides in California, accusing him of living in the state "on paper only."

Separately, conservative filmmaker Joel Gilbert filed a legal challenge seeking to keep Swalwell off the ballot. That attempt was tentatively rejected on Friday when a Superior Court judge said the evidence presented supported a presumption that Swalwell has lived in California for the required five years.

Neither Pulte nor Swalwell's office immediately responded to requests for comment. Cheyanne M. Daniels and Blake Jones contributed to this report.