Trump claimed two houses as primary residences in the 1990s: ProPublica
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- ProPublica reported that in the 1990s, President Trump took out mortgages weeks apart on two homes that he claimed as his primary residence but rented out, raising questions about borrower intent and the definitions of mortgage fraud.
- Trump used Merrill Lynch to finance both properties and signed occupancy agreements stating that he would live in each property as his primary residence, although contemporaneous records show the homes were rented.
- The transactions are notable as the Trump administration is investigating four Democrats for alleged mortgage fraud, resulting in an indictment and legal challenges involving high-profile political figures.
- The U.S. Government Accountability Office is investigating whether Fannie Mae and Freddie Mac’s regulator, the Federal Housing Finance Agency, abused its authority to target political opponents.
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The White House denies wrongdoing and the loans were long ago paid off, but the circumstances are similar to deals by political rivals that Trump has called fraudulent.
President Donald Trump took out mortgages weeks apart in the 1990s on two homes that he claimed as his primary residence but rented out — circumstances similar to those he claims as evidence that political opponents committed mortgage fraud, ProPublica reported Monday.
Legal experts told ProPublica that there are situations where claiming more than one home as a primary residence can be legitimate, and that the borrower’s intent is critical to proving mortgage fraud. Trump used the same lender, Merrill Lynch, to finance both homes in December 1993 and January 1994, and his signature appears on both loan agreements, ProPublica found.
“The two President Trump mortgages you refer to are from the same lender,” a White House spokesperson told ProPublica, and “it is illogical to believe that the same lender would agree to defraud itself.”
By claiming a home as a primary residence, borrowers can get a better interest rate than if they were to purchase a home as a second home or investment property.
Trump signed documents with standard occupancy requirements stating that he would make both properties his primary residence within 60 days and live there for at least a year, ProPublica reported. But news reports from the time and an interview with his former real estate agent indicate that the homes were used as rental properties.
The loans, totaling $1.725 million, have been paid off and the statute of limitations for mortgage fraud has long since expired. But the transactions are newsworthy as the Trump administration is investigating four prominent Democrats for alleged mortgage fraud.
All four deny wrongdoing, but criminal referrals from Bill Pulte, the head of Fannie Mae and the federal regulator of Freddie Mac, have resulted in an indictment against New York Attorney General Letitia James and served as the basis for the Trump administration’s attempt to remove Federal Reserve Governor Lisa Cook from her post.
The case against James was dismissed on November 24 on the grounds that prosecutor Lindsey Halligan was illegally appointed, and the Supreme Court put on hold the Trump administration’s attempt to remove Cook pending a hearing in January.
The U.S. Government Accountability Office agreed last week to investigate whether Fannie Mae and Freddie Mac’s federal regulator, the Federal Housing Finance Agency, “misused federal authority and resources” to investigate political opponents of the Trump administration.
Another Democrat referred by Pulte, California Rep. Eric Swalwell, sued Pulte, the FHFA, Fannie and Freddie on Nov. 25. The lawsuit alleges that the Trump administration violated the Privacy Act of 1974, which prohibits federal agencies from disclosing sensitive information about individuals for purposes not expressly authorized by law.
ProPublica September reported that three members of the Trump Cabinet have claimed more than one home as their primary residence: Labor Secretary Lori Chavez-DeRemer, Transportation Secretary Sean Duffy and Lee Zeldin, head of the Environmental Protection Agency. All have denied wrongdoing.
The White House spokesperson characterized ProPublica’s latest report as “yet another desperate attempt by the left-wing media to discredit President Trump with false accusations.”
President Trump “has never broken the law and never will,” the spokesperson told ProPublica.
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