Despite being known for his vehement opposition to Trump, Democrat Senator Adam Schiff found himself under a glaring light of scrutiny during his recent appearance on NBC’s ‘Meet the Press’. Schiff is reportedly caught in the middle of a growing mortgage fraud controversy, placing him under the increasing watch of a Maryland grand jury. The allegations range from mortgage and mail fraud to bank fraud, and making false statements to financial institutions, allegations that the Federal Housing Finance Agency (FHFA) have brought to light. Assertedly, Schiff declared a Maryland property and a California condo to be his primary residences for mortgage and tax purposes, an accusation if proven true, could have severe legal consequences.
Similarly ensnared in similar circumstances are the New York Attorney General Letitia James, Federal Reserve Governor Lisa Cook, and two others whose names haven’t been disclosed. The gravity of these allegations can’t be understated, given the potential for a jail sentence of up to 30 years if they are found guilty. Schiff, however, dismissed these accusations with a strong rebuttal on ‘Meet the Press’, terming the allegations as false and accusing the President of being aware of their falsehood.
In Schiff’s view, the actions of FHFA head Bill Pulte were no more than a tool for the President to act against him, Letitia James, and the unnamed Federal Reserve individual. He argued that such an action was a weaponization of mortgages to target critics of the political administration. Schiff’s attempts to discredit these serious allegations as a form of reprisal or a game of legal warfare by a power-hungry president fall flat when one remembers the significance of mortgage fraud.
Mortgage fraud is a grave crime that potentially affects the entire population. Financial institutions frequently offer better rates and lower initial payments for primary residences realizing the reduced risk of default compared to investment properties. However, if there is widespread false representation of investment properties as primary residences, this could lead to a greater financial risk for the lenders. Companies could involuntarily find themselves holding the reins of towering levels of risk which, if not managed properly, could result in a seismic shake-up similar to the 2008 global financial crisis.
Underestimating the severity of mortgage fraud is both ethically misguided and ignorant of the history of such crises. Those who dismiss these concerns as minor are quick to forget the massive implications and widespread destruction the 2008 crisis caused due to fraud and insufficient regulation. Hence, nevertheless how high-profile the critics are, or how much they dislike Trump, if they defy the law, their criticism won’t shield them from the burden of the offense.
Bill Pulte, appointed by Trump and known for his comprehensive know-how on housing finance, is keen on cleaning up the system. He fervently stressed on the severity of mortgage fraud and shared his ambitious goal to nearly eradicate the crime. Pulte’s campaign to expose fraudulent practices and unethical behaviour aims to preserve the stability of Fannie Mae and Freddie Mac, government-backed enterprises that support approximately half of the country’s residential mortgages.
Pulte has also focused on the case he referred to the Department of Justice against Lisa Cook, citing its significant implications given her central role in setting interest rates. If Lisa Cook, whose tenure isn’t due until 2038, is found guilty of the accusations, this could lead to her resignation and Trump appointing his preferred successor. Consequently, the balance of the Federal Reserve could tilt in Trump’s favor, impacting the stance of the central banking system.
The allegations against Lisa Cook are that she falsified documents to declare two properties – a house in Ann Arbor, Michigan, and a condominium in Atlanta, as her primary residences, thereby obtaining more competitive mortgage terms. Investigations are ongoing to determine whether there was any misrepresentation in her mortgage situation during her vetting process. Any guilt found could profoundly impact her role at the Federal Reserve and her future responsibilities.
Additionally, the potential change at the Federal Reserve plays into Trump’s ongoing power tussle with Jerome Powell, the independent chairman of the body. Despite pressure from Trump, Powell has resisted lowing interest rates, citing concerns over inflation. Trump has countered this by pointing out the Fed’s willingness to modify rates to benefit Joe Biden politically. A proven guilty of Cook could play into Trump’s hands, helping him mold the Federal Reserve according to his preferences.
Whether Cook is guilty or innocent of these charges is a matter to be decided by investigations, her personal characteristics playing no role in the matter. This notion is applicable to Schiff and James as well – their opposition or hatred for Trump cannot and should not influence the verdict of the legal proceeding. If any public figure, irrespective of their political affiliation, has been reckless or corrupt enough to breach the law, they cannot expect leniency especially from Trump, who himself has faced relentless political attacks, half-truths, and attempts for character defamation.
Trump, having weathered the storm of multiple impeachment attempts and never-ending accusations including the infamous Russiagate, may view this as a triumph against attempts to undermine his presidency. These events, even if challenging, seem to serve as markers of his resilience and constant struggle.
Parallel to the discussion on mortgage fraud, the subject of Kamala Harris’s silence about Biden’s cognitive state during his presidency draws attention. As Vice President, Harris was arguably privy to close and personal observations on Biden’s cognitive health and yet, there have been no disclosures from her. She had vast opportunities to monitor Biden’s state of mind through daily briefings, public appearances, and private lunches.
Given Biden’s questionable performance during his term, doubts arise about the mechanisms put in place to safeguard the country’s affairs. Did the Cabinet consider invoking the 25th Amendment, and if not, why? These questions, if left unanswered, could mark a stain on Harris’s political career. House Oversight Committee chairman Comer can leverage this pending mystery for a testimony from Harris.
The American public deserves an explanation about the subtly declining cognitive state of their leader and the apparent lack of due action from the Vice President. Biden’s capacity to serve as President during certain phases of his term has been questioned, and actions, or the lack thereof, from Harris around this issue, are of significant concern. The question thus remains: will Comer make it mandatory for Harris’s testimony in this matter?
The post Senator Adam Schiff in Spot Over Mortgage Fraud Controversy appeared first on Real News Now.
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