A Lawsuit Alleges Abuse of Power and Political Retaliation
Representative Eric Swalwell, a Democrat from California, has filed a civil lawsuit against Bill Pulte, the director of the Federal Housing Finance Agency (FHFA), accusing him of secretly accessing private mortgage records of prominent Democrats. According to the suit, these records were then used to initiate federal criminal investigations, which Swalwell claims is an abuse of power.
The lawsuit was filed in a federal court in Washington, D.C., and alleges that Pulte violated the Privacy Act and the First Amendment by obtaining and leaking sensitive information about political opponents. The FHFA, which is responsible for overseeing government-sponsored enterprises like Fannie Mae and Freddie Mac, is accused of exceeding its authority by accessing data that should not have been shared.
Swalwell stated in a public statement, "Today I have filed a civil lawsuit against FHA Director Bill Pulte for violating the Privacy Act and First Amendment. Director Pulte has combed through private records of political opponents. To silence them."
Accusations of Misuse of Government Resources
According to the lawsuit, Pulte allegedly abused his position by searching through government databases to obtain private mortgage records of several Democrats, including Swalwell. These records were then used to create allegations of mortgage fraud, which were referred to the Department of Justice (DOJ) for potential prosecution.
The DOJ initiated an investigation into Swalwell on November 13, citing alleged mortgage fraud. The referral from Pulte claimed that Swalwell falsely represented his home in Washington, D.C., as his primary residence on a mortgage agreement to secure better loan terms.
However, the lawsuit argues that these allegations are false and represent a "gross mischaracterization of reality." It claims that the referral was a misuse of government resources and a violation of the law.
Impact on Personal Life and Political Ambitions
The DOJ investigation comes at a critical time for Swalwell, who recently announced his intention to run for governor of California in 2026. The lawsuit states that the release of his personal information has damaged his reputation and forced him to spend significant personal resources defending himself against the charges.
Swalwell also claims that the exposure of his family's home has increased security risks and caused emotional distress. He noted that his political views have made him a target of President Donald Trump, and the lawsuit suggests that Pulte's actions are part of a broader pattern of targeting critics of the former president.
The suit references other cases where the FHFA referred political figures to the DOJ, including New York Attorney General Letitia James, Senator Adam Schiff, and Lisa Cook, a member of the Federal Reserve Board of Governors. A recent ruling by a federal judge dismissed the indictment against James, highlighting the controversial nature of these referrals.
Calls for Accountability and Legal Action
Swalwell is seeking damages, a legal declaration that the FHFA violated federal law, and an injunction to force the agency to retract its referral. He argues that Pulte’s actions were intentional and aimed at undermining democratic norms by using government machinery to suppress criticism.
The lawsuit asserts that such behavior is contrary to the principles protected by the First Amendment and the Privacy Act, which are designed to prevent the government from silencing its critics.
Pulte and the FHFA have not yet responded to requests for comment from Fox News Digital. The case continues to raise questions about the appropriate use of government resources and the potential for political retaliation within federal agencies.
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