Rep. Eric Swalwell has filed a lawsuit accusing federal housing officials appointed by President Donald Trump of launching a false and politically driven investigation into whether he committed mortgage fraud. Swalwell strongly denies the accusations.
His lawsuit, filed in Washington, D.C. federal court, argues that the investigation is meant to damage his campaign for governor of California and punish him for his past criticism of Trump.
What the Lawsuit Claims
The investigation was announced earlier this month by Bill Pulte, the director of the Federal Housing Finance Agency (FHFA). Swalwell’s lawyers said the probe violates the First Amendment and federal privacy laws because it uses government power to silence political opponents.
The lawsuit asks the court to stop the investigation and block any potential criminal charges. It also seeks damages for emotional distress and harm to Swalwell’s public reputation.
Swalwell recently announced his run for governor during an appearance on “Jimmy Kimmel Live!” and now joins an already crowded race.
Background: A History of Conflict With Trump
Swalwell, a Democrat from Castro Valley, served as a manager during Trump’s second impeachment trial in 2021. He later sued Trump for allegedly inciting the January 6 Capitol riot. That case is still active.
The new lawsuit includes several of Trump’s recent social media posts, where he insulted Swalwell using terms like “idiot” and “total sleazebag.”
Who Else Was Accused?
Since returning to the White House, Trump and FHFA director Pulte have accused several Democrats of mortgage fraud, including:
- Sen. Adam Schiff (California)
- New York Attorney General Letitia James
- Federal Reserve Governor Lisa Cook
The allegation states that these officials listed more than one home as their primary residence to qualify for lower mortgage rates. All of them have denied the accusations. None of them — including Swalwell, Schiff, or Cook — have been charged with any crime.
Recent Case Dismissals
On Monday, a federal judge dismissed mortgage fraud charges against Letitia James and dismissed unrelated charges against former FBI Director James Comey.
Judge Cameron McGowan Currie ruled that Trump did not have the legal authority to appoint interim U.S. attorney Lindsey Halligan, who had brought the indictments, because Trump fired the previous interim prosecutor for refusing to pursue the cases.
The Trump administration says it will appeal the decision.
Swalwell’s Defense
In the lawsuit, Swalwell says he never committed mortgage fraud and followed the rules. His attorney, Sean Hecker, wrote that Swalwell submitted a sworn statement making it clear that the Washington, D.C. home he shares with his wife is only her primary residence, not his. He says he remains a permanent resident of California.
Allegations Against Bill Pulte
The lawsuit accuses FHFA director Pulte of misusing his authority to search private mortgage databases from Fannie Mae and Freddie Mac. Swalwell claims Pulte used those records to “invent” false fraud accusations against high-profile Democrats and then referred them to the Justice Department for prosecution.
The lawsuit also says Pulte overstepped his authority by firing board members, making himself chairman of the Housing Finance Agency, and ignoring rules that require DOJ approval for criminal referrals.
Pulte’s office has not responded to requests for comment.
Conclusion
Rep. Eric Swalwell’s lawsuit adds another chapter to the growing tension between Democratic officials and the Trump administration. Swalwell argues the mortgage fraud probe is designed to intimidate political opponents and damage his campaign for governor. As the investigation and lawsuits continue, the case could have major implications for both California politics and national debates over the use of federal power.
