Swalwell Drops Lawsuit Against FHFA Director Bill Pulte, Faces Ballot Challenge

Representative Eric Swalwell, a California Democrat running for governor, has dropped his lawsuit against Federal Housing Finance Agency (FHFA) Director Bill Pulte, according to court filings. The suit alleged Pulte improperly accessed Swalwell’s mortgage records and referred him to the Department of Justice (DOJ) over claims of mortgage and tax fraud.

Swalwell filed the lawsuit in November, asserting Pulte violated federal privacy laws and his First Amendment rights by “weaponizing” mortgage fraud investigations against critics of former President Donald Trump. He claimed Pulte unlawfully accessed and disclosed his private mortgage records in a retaliatory act stemming from Swalwell’s vocal criticism of Trump, including his role as an impeachment manager during Trump’s second impeachment trial.

The lawsuit contended that Pulte had previously directed investigations toward other Trump critics, including New York Attorney General Letitia James, Senator Adam Schiff, and Federal Reserve Governor Lisa Cook, suggesting a pattern of politically motivated investigations. Swalwell alleged that Pulte falsely asserted he misrepresented his Washington, D.C. Home as his primary residence to secure more favorable mortgage terms, despite being a California resident.

According to a statement provided to CNBC by a Swalwell campaign spokesperson, Micah Beasley, “Pulte threatened a case. We called his bluff. He never brought it. And we just won on the same nonsense issue in California. Case closed.” This refers to a separate challenge to Swalwell’s eligibility to appear on the California gubernatorial ballot, which a judge tentatively rejected Friday, finding sufficient evidence of his California residency.

The dismissal of the lawsuit was “without prejudice,” meaning Swalwell retains the option to refile or amend the complaint at a later date. Each side will bear its own legal fees and costs. The FHFA did not immediately respond to a request for comment.

The DOJ referral from Pulte centered on allegations that Swalwell made false statements on loan documents. Swalwell has consistently denied these claims, calling them “patently false.” The case was filed in the U.S. District Court for the District of Columbia, alleging violations of the Privacy Act of 1974.

Swalwell’s residency has grow a point of contention in the California gubernatorial race, with Democratic rival Tom Steyer accusing him of maintaining only a nominal residency in the state. The congressman’s residences have also drawn scrutiny from the Trump administration.