President Donald Trump is intensifying his efforts against political opponents by raising allegations of mortgage fraud.
New York Attorney General Letitia James was indicted last Thursday on charges of bank fraud and making false statements regarding a mortgage loan. Trump’s campaign has also targeted Federal Reserve Governor Lisa Cook for allegedly misrepresenting information on a mortgage application, and Senator Adam Schiff is under federal investigation for similar claims.
Mortgage fraud, which involves deliberately providing false or omitted information on mortgage applications, can include misrepresenting income, assets, or property occupancy. Trump’s probes have particularly focused on occupancy fraud, where a property is claimed as a primary residence despite being rented or unused.
Experts note, however, that mortgage fraud is rare and proving malicious intent is often difficult. Clifford Rossi, a finance professor at the University of Maryland, explained that mistakes on mortgage forms can occur honestly, such as marking a property as primary despite co-borrowers residing there.
Data shows that only 1 in 116 mortgage applications in the second quarter of 2025 were flagged as potentially fraudulent. Occupancy fraud is even less common.
James, who previously won a major civil case against Trump for mortgage and tax fraud, allegedly claimed a Norfolk, Virginia property as a secondary residence while renting it out. She has denied wrongdoing, calling the charges “baseless,” and civil rights groups condemned the indictment as an abuse of power. Schiff similarly described the investigation as a “vindictive prosecution.”
Cook has denied any wrongdoing regarding her vacation home and has taken legal action to block Trump’s attempt to remove her, asserting that the effort is politically motivated.
Trump has publicly urged swift prosecution of James, Schiff, and former FBI Director James Comey, claiming that “justice must be served” and that legal experts support his position.
Legal specialists, however, caution that proving intentional fraud is extremely difficult, as errors or misunderstandings on mortgage documents are common. Former Citi risk officer Clifford Rossi highlighted that even when fraud is suspected, cases are often challenging to prosecute.
Experts also note potential ethical concerns regarding Bill Pulte, director of the Federal Housing Finance Agency, who requested investigations into Cook’s mortgage on social media, rather than through formal internal channels.
