U.S. Rep. Eric Swalwell, D-Calif., has voluntarily dismissed his lawsuit against Federal Housing Finance Agency (FHFA) Director Bill Pulte, ending a months-long legal battle over allegations that Pulte unlawfully accessed and weaponized Swalwell’s private mortgage records.
On March 20, Swalwell and the FHFA filed a joint stipulation to dismiss the case without prejudice. The lawsuit, initially filed in November 2025, accused Pulte of abusing his authority by allegedly scouring Fannie Mae and Freddie Mac databases to target high-profile Democrats with mortgage fraud referrals to the Department of Justice.
Swalwell, a seven-term congressman, is running for California governor. In a statement emailed to the Sacramento Bee, Swalwell’s campaign spokesperson, Micah Beasley, said he dropped the suit because the DOJ never acted on Pulte’s referral.
“We called his bluff,” Beasley stated, according to the Bee. “He never brought it. Case closed.”
Pulte also framed the decision to drop the lawsuit as positive, writing, “Stay tuned,” on X while sharing a story from conservative media outlet Blaze News critically covering Swalwell’s withdrawal of the lawsuit.
The FHFA did not respond to a request for comment by time of publication.
The conflict originated from a criminal referral Pulte made to the DOJ last November, which alleged Swalwell committed mortgage fraud by falsely claiming a Washington, D.C., home as his primary residence to secure favorable loan terms.
A 2022 deed of trust for the property features a clause stating the borrower “shall occupy, establish, and use the Property as Borrower’s principal residence.” Swalwell maintains that an affidavit attached to the mortgage agreement indicated the home would be his wife’s primary residence.
The Swalwell campaign did not respond to a request for comment.
The dismissal of the lawsuit comes as Swalwell faces mounting scrutiny over his California residency in his 2026 bid to become governor of California. The same D.C. mortgage application has become a focal point for political rivals.
On March 5, the campaign of Democratic rival Tom Steyer sent a letter, later obtained by Politico, to the California secretary of state, pointing to the D.C. deed of trust and hotel records as evidence that Swalwell does not meet the state’s five-year residency requirement for governor. The Steyer campaign argued Swalwell “appears to live in California on paper only,” according to the letter.
Swalwell recently survived a separate local challenge from conservative filmmaker Joel Gilbert, who sought to remove the congressman from the ballot. A Sacramento Superior Court judge tentatively ruled in Swalwell’s favor on Friday, noting that California law presumes elected representatives reside at the address on their voter registration, as reported by Politico.
Swalwell is registered to vote at a Livermore, Calif., home owned by the relatives of his former chief of staff, where he reportedly rents a room, the Sacramento Bee reported.
Swalwell’s campaign dismissed these attacks on his residency, claiming, “these are all tired talking points from a MAGA quack,” in an emailed statement to Politico.
While Swalwell steps away from the federal lawsuit, Pulte’s actions remain under scrutiny. The Government Accountability Office launched an investigation in December into Pulte’s mortgage fraud referrals, which have targeted other prominent figures including New York Attorney General Letitia James, Sen. Adam Schiff, D-Calif., and Federal Reserve Governor Lisa Cook.
