(Luis Cornelio, Headline USA) California gubernatorial candidate and Rep. Eric Swalwell on Friday dropped his long-shot lawsuit against the Trump official behind the criminal referral accusing Swalwell of mortgage fraud.
The Swalwell campaign suggested the lawsuit was dropped because it had already achieved its goal, successfully dissuading Federal Housing Finance Agency Director Bill Pulte and the Trump administration from pursuing the criminal referral.
“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,” Swalwell spokesperson Micah Beasley told Politico, which first reported on the voluntary dismissal.
The federal lawsuit claimed Pulte’s criminal referral targeted Swalwell over his years-long smears of President Donald Trump, which Swalwell said are protected by the First Amendment.
It also argued that the referral violated the Privacy Act of 1974, which bars federal officials from using access to citizens’ private information to harm political opponents.
Filed in federal court on Nov. 25, the suit also listed as plaintiffs the Federal Housing Finance Agency, the Federal Home Loan Mortgage Corporation, and the Federal National Mortgage Association.
Pulte’s referral accused Swalwell of mortgage fraud involving millions in loans and refinances, alleging he falsely declared Washington, D.C., as his primary residence.
In response to the voluntary dismissal, Pulte wrote on X: “Stay tuned.”
Stay tuned.
“Swalwell drops lawsuit against Trump housing official over mortgage fraud allegations” https://t.co/VMSPNAh0NI
— Pulte (@pulte) March 21, 2026
Swalwell is among other leftist figures who have faced criminal referrals or investigations, including embattled former FBI Director James Comey, John Bolton, Sen. Adam Schiff, Federal Reserve Governor Lisa Cook and New York Attorney General Letitia James.
