Swalwell Drops Lawsuit Against FHFA Director Pulte

Congressman faces accusations of mortgage fraud as other Democrats also receive criminal referrals

Mar. 22, 2026 at 12:05am

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Rep. Eric Swalwell (D-Calif.) has dropped his lawsuit against Federal Housing Finance Agency (FHFA) Director Bill Pulte, after Swalwell was accused of mortgage fraud. Swalwell had sued Pulte in November, claiming he abused his authority by forwarding a criminal referral regarding Swalwell's mortgage to the Department of Justice. Several other prominent Democrats have also faced similar criminal referrals in connection with mortgage fraud since former President Trump returned to office.

Why it matters

The case highlights ongoing political tensions and accusations of wrongdoing between Democrats and the Trump administration, with the mortgage fraud allegations potentially impacting Swalwell's gubernatorial campaign in California. The broader investigation by the Government Accountability Office into Pulte's referrals also raises questions about the politicization of federal agencies and oversight of potential abuses of power.

The details

Swalwell's lawyers claimed Pulte had searched for 'the private mortgage records of several prominent Democrats,' and that Swalwell was targeted for being 'one of the president's most vocal and visible critics in Congress.' Pulte has also sent similar referrals to the Justice Department regarding other Democratic officials, including New York Attorney General Letitia James and Sen. Adam Schiff (D-Calif.). Conservative filmmaker Joel Gilbert has also tried to have Swalwell removed from the California gubernatorial ballot over residency issues.

  • In November 2025, Swalwell sued Pulte, accusing him of abusing his authority.
  • In December 2025, the Government Accountability Office said it was investigating Pulte over the mortgage referrals.
  • In March 2026, Swalwell dropped his lawsuit against Pulte.

The players

Eric Swalwell

A Democratic Congressman from California who is running for governor and was accused of mortgage fraud.

Bill Pulte

The Director of the Federal Housing Finance Agency who forwarded a criminal referral regarding Swalwell's mortgage to the Department of Justice.

Letitia James

The Democratic New York Attorney General who also faced a criminal referral from Pulte in connection with mortgage fraud.

Adam Schiff

The Democratic Senator from California who also faced a criminal referral from Pulte in connection with mortgage fraud.

Lisa Cook

A member of the Federal Reserve Board of Governors who also received a similar referral from Pulte last year.

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What they’re saying

“The Trump Administration could question Swalwell's legitimacy as Governor and, therefore, imperil California's receipt of federal funds, the state's ability to deploy the California National Guard, and act in emergencies.”

— Steyer campaign's general counsel

“Steyer 'has sunk to a new low, peddling far-right MAGA conspiracy theorist Joel Gilbert's tired talking points.'”

— Swalwell campaign

What’s next

The Government Accountability Office's investigation into Pulte's mortgage fraud referrals is ongoing.

The takeaway

This case highlights the ongoing political tensions and accusations of wrongdoing between Democrats and the Trump administration, with the mortgage fraud allegations potentially impacting key Democratic figures like Swalwell. The broader investigation into the FHFA director's actions also raises concerns about the politicization of federal agencies and the need for robust oversight to prevent potential abuses of power.