California Democrat Faces Scrutiny Over Alleged Mortgage And Tax Fraud Following FHFA Referral

Friday, November 14, 2025, 7:45 A.M. ET. 4 Minute Read, By Jennifer Hodges, Political Editor: Englebrook Independent News,

WASHINGTON, DC.- Federal investigators have opened a criminal probe into Rep. Eric Swalwell (D-CA) following a referral from the Federal Housing Finance Agency (FHFA) alleging potential mortgage fraud, state and local tax fraud, and related financial misconduct tied to his Washington, D.C. residence.

     According to the referral, Swalwell may have misrepresented the status of his D.C. property as his primary residence in order to obtain favorable mortgage and refinancing terms. The allegations, now before the U.S. Department of Justice (DOJ), suggest that the congressman benefited from loan structures available only to borrowers who meet strict occupancy requirements, including declarations about their principal residence.

     Federal officials have also indicated that the investigation may encompass whether Swalwell claimed the same residence for preferential tax treatment at the local or state level, expanding the probe into possible tax-fraud violations. Authorities are also examining whether any insurance-related filings or representations were associated with the same property.

     Swalwell publicly confirmed late Thursday that he is the subject of an active federal investigation. In a pointed statement, he framed the probe as political retaliation:

     “As the most vocal critic of Donald Trump over the last decade and as the only person who still has a surviving lawsuit against him, the only thing I’m surprised about is that it took him this long to come after me. I refuse to live in fear in what was once the freest country in the world.”

     The congressman, who rose to national prominence through his role on the House Intelligence Committee and his outspoken criticism of former President Trump, vowed to continue pursuing his civil lawsuit against Trump and said he would not be intimidated into altering his legislative agenda.

     The DOJ has not released details about the scope of the investigation and declined to comment when asked about the case. The FHFA confirmed that its referral included documentation surrounding the financing and refinancing of Swalwell’s D.C. home, though officials would not discuss specific allegations.

What Is Known So Far;

• The FHFA submitted a formal referral alleging that Swalwell misrepresented his Washington, D.C. property as his primary residence to secure favorable mortgage terms.
• The DOJ is reviewing potential violations, including mortgage fraud, state and local tax fraud, and related insurance-fraud activity.
• Swalwell has acknowledged the existence of the federal investigation and characterized it as politically motivated.
• The probe is part of a wave of recent FHFA referrals involving elected officials across several states.

Political And Legal Stakes;

     If the probe advances toward indictments, Swalwell would become one of the highest-profile House members in recent years to face criminal exposure over real-estate loan practices. Mortgage-fraud charges can carry significant penalties, including fines, restitution, and potential prison time.

     Even without charges, the existence of a DOJ investigation may generate political vulnerabilities for the congressman. House leaders are already facing questions about whether the bipartisan House Ethics Committee should initiate a parallel review. The inquiry also comes at a sensitive moment for Democrats, who have been pressing ethics concerns against Republicans while battling multiple external investigations targeting their own members.

What Comes Next;

     Federal prosecutors are expected to examine loan documents, correspondence, and occupancy declarations submitted during the purchase and refinancing stages. Legal analysts say the opening phase of the investigation could determine whether subpoenas, witness interviews, or grand jury proceedings follow.

     Swalwell’s office says he plans to remain active in his legislative work and is not considering stepping down from any committee assignments. A spokesperson added that the congressman believes the accusations will be disproven once the full record is reviewed.

     The probe is ongoing, and further details are expected to emerge as the DOJ evaluates the referral and supporting materials.

Editor’s Note;

This report was researched and written by Jennifer Hodges, Political Editor, Rnglebrook Independent News, using publicly available information, including official statements by Rep. Eric Swalwell, referral disclosures from the Federal Housing Finance Agency, and reporting from major national news outlets. Attribution for all referenced materials is included in this note at the request of the editors.