President Trump announced the government-sponsored enterprise's findings in a Truth Social post Tuesday. The scheme allegedly involves a Maryland property Schiff has owned since at least 2009, which he designated as a second home in 2020. 

"Mortgage fraud is very serious, and CROOKED Adam Schiff (now a Senator) needs to be brought to justice," wrote Trump, referring to the lawmaker, who has been a longtime critic of the president. 

A spokesperson for the Federal Housing Finance Agency, Fannie Mae's regulator, declined comment Tuesday, but government officials confirmed Trump's post to National Mortgage News.

Schiff, a staunch critic of Trump labeled the accusation false and political retaliation in a post on X Tuesday. The senator, and a spokesperson, called the accusation a distraction from Trump's "Epstein files problem", a reference to feds' recent downplay of records related to disgraced financier Jeffrey Epstein.

"As is routine for a member of Congress representing a district thousands of miles away from Washington with kids to raise, then-Representative Schiff made the decision to buy a home in Maryland," a spokesperson for the senator said. "He also maintained a home in California, where he lived when not in Washington." 

The spokesperson said the lenders who provided mortgages for both of Schiff's homes were aware of his intended year-round use of both homes, neither of which were vacation homes. 

"He has always been completely transparent about this," the statement read. 

The probe was allegedly conducted by Fannie Mae's Financial Crimes Division. It's unclear if the government-sponsored enterprise referred its findings to the Department of Justice for prosecution. 

According to Trump, Schiff refinanced the Maryland property in question in 2009, but the president did not clarify whether Schiff designated it as his primary residence at the time. According to congressional rules, lawmakers must live in the state they represent, although not necessarily the same district. Schiff has represented a Los Angeles-area district since 2001 and was elected as California senator in 2024.

The senator's residency was previously questioned in 2023, regarding his Burbank, California home and the Maryland property in the Washington, D.C. suburbs.

Schiff is the second high-profile Democrat to be accused of loan fraud in recent months, following a federal grand jury investigation against New York Attorney General Letitia James. Bill Pulte, director of the agency he's dubbed as U.S. Federal Housing, has emphasized the regulator's crusade against mortgage fraud with several initiatives