A criminal referral first filed by a Trump administration official is now emerging as a new point of contention in the 2026 California governor’s race, as Democratic candidate and billionaire Tom Steyer seeks to use the allegations to challenge the candidacy of fellow Democrat Rep. Eric Swalwell.

The issue stems from a November 2025 referral submitted by Bill Pulte, director of the Federal Housing Finance Agency, to the U.S. Department of Justice. 

In the letter, Pulte alleged that Swalwell may have made false statements on mortgage documents tied to a Washington, D.C., property by indicating the home would serve as a primary residence, which can qualify borrowers for more favorable loan terms.

Swalwell blames his wife, calls Steyer a "MAGA quack"

Swalwell, a Democratic congressman from California, has denied wrongdoing. He has said in past statements that paperwork tied to the property included a sworn declaration explaining that the residence was intended for his wife rather than himself.

The matter resurfaced as the race for California governor intensifies. Steyer has attempted to use the case to challenge Swalwell’s credibility as a candidate. Steyer has argued that Swalwell doesn't live in the state he wants to run. He petitioned the California Secretary of State to enforce residency requirements in the gubernatorial race.

Swalwell has rejected the claims. “These are all tired talking points from a MAGA quack who screams that Bruce Lee is alive, and Paul McCartney is dead,” Swalwell’s communications director, Micah Beasley, told McClatchy. “Eric rents a home in the East Bay. There is and never has been any question about that.” 

Under the California Constitution, candidates must be U.S. citizens and residents of the state for at least seven years. The constitution does not automatically disqualify candidates who are under investigation, charged with a crime, or even convicted of a felony.

Swalwell is pursuing legal action against Pulte. In a lawsuit filed in November 2025, Swalwell accused the agency head of misusing government data and targeting him for political reasons after the referral became public. That case, filed in the District of Columbia federal court, has been delayed, and the court ordered Swalwell to file an amended complaint by March 23 of this year. The matter is being handled by controversial anti-Trump Judge James E. Boasberg.

The case remains unresolved.

Swalwell and "Fang Fang"

Swalwell was previously swamped in controversy in 2020 after he was among the politicians targeted by a suspected Chinese spy, Christine Fang, also known as, "Fang Fang."

At the time, Swalwell said he was being targeted for his harsh criticism of Trump.

In January 2023, then-House Speaker Kevin McCarthy blocked Swalwell from serving again on the House Intelligence Committee, citing Swalwell's allegedly intimate links to Fang. Swalwell said he cut off his relationship with Fang after the FBI alerted him that she might be a Chinese spy. Axios reported that Fang left the country unexpectedly in mid-2015 amid the investigation. She did not respond to multiple attempts by Axios to reach her by email and Facebook.

In May 2023, the House Ethics Committee reportedly ended its probe into Swalwell and did not find any wrongdoing.

Security detail for Pulte

According to a new report, the Health and Human Services watchdog's office has requested a security detail for Pulte, who was appointed during the second term of President Donald Trump.

Pulte has made several similar referrals involving public officials, such as Sen. Adam Schiff, D-Calif., alleging possible misrepresentations tied to federally backed mortgages overseen by the FHFA.