Mortgage fraud allegations fade as judge questions bid to block California candidacy
Rep. Eric Swalwell ended his legal fight with one of Washington’s top housing officials, closing a high‑profile clash over alleged mortgage fraud. At the same time, a separate effort to knock him off California’s gubernatorial ballot appeared to stall.
The Democrat, who represented a Bay Area district and ran for governor, has sued Federal Housing Finance Agency director Bill Pulte in November. He accused him of using federal power to punish political enemies by mining their mortgage records and referring them for criminal investigation. The case centered on a Washington, D.C., home that critics claimed Swalwell has misrepresented as his primary residence.
Swalwell’s complaint called the accusations “patently false,” asserting that he is a permanent California resident and that Pulte’s actions caused “reputational harm, legal expenses, and mental and emotional distress.”
He argued that Pulte, angered by Swalwell’s criticism of president Donald Trump, violated the First Amendment’s “bedrock prohibition on viewpoint-based retaliation” by obtaining his private mortgage information and forwarding a criminal referral to the Department of Justice.
Lawyers for Swalwell said Pulte searched the private mortgage records of several prominent Democrats, targeting “one of the president’s most vocal and visible critics in Congress.”
Pulte also sent referrals involving other high‑profile Democrats, including New York Attorney General Letitia James and Sen. Adam Schiff, as well as Federal Reserve governor Lisa Cook, according to court filings.
In a statement, Swalwell campaign spokesperson Micah Beasley said the lawsuit effectively deterred further action. “We called his bluff. He never brought it,” Beasley said. “Case closed.”
Mortgage probe raised First Amendment, privacy concerns
Swalwell framed the fight in constitutional and privacy terms. “There’s a reason the First Amendment — the freedom of speech — comes before all others,” he said when the suit was filed.
He accused Pulte of “weaponizing mortgage fraud investigations to silence opponents” and combing through private records to punish critics of Trump.
Pulte did not comment publicly on the dismissal. The Government Accountability Office previously confirmed it was investigating his handling of mortgage referrals at lawmakers’ request.
Ballot challenge highlighted residency rules and politics
On the same day Swalwell dropped the Pulte case, Sacramento Superior Court Judge Shelleyanne W.L. Chang issued a tentative ruling signaling she was unlikely to remove him from the governor’s ballot over residency claims.
Conservative filmmaker Joel Gilbert argued that Swalwell does not truly live in California and therefore failed the state Constitution’s five‑year residency requirement.
Chang wrote that Gilbert has not proved Swalwell’s domicile is outside California and noted that state law “conclusively presumes” members of Congress live at the address on their voter registration.
Swalwell and his wife are registered to vote in Livermore, listing a home where he rents a room and stays when in his district.
Swalwell’s residency became a flashpoint in the Democratic primary as well. Billionaire rival Tom Steyer’s campaign alleged that the congressman “appears to live in California on paper only” and warned in a letter that a successful challenge could “imperil California’s receipt of federal funds” and the state’s ability to act in emergencies.
“Billionaire Tom Steyer’s attempt to cozy up with MAGA conspiracy theorists and steal the election has been stopped by the courts,” Swalwell said after Chang’s tentative ruling.
“My California residency was never in doubt. And now the courts have agreed.”
Gilbert called Swalwell’s California presence “a total ruse” and said he planned to appeal if the final ruling did not go his way.
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