Trump Accused Rivals of Mortgage Fraud While Doing the Same, records Show
A ProPublica investigation reveals that former President Donald Trump secured mortgages on two Florida properties in 1993 and 1994, claiming both as his primary residences – a practise his administration later condemned as possibly criminal.
For months, the Trump administration aggressively accused political opponents of mortgage fraud, alleging impropriety for claiming more than one primary residence.President Trump himself branded one individual “deceitful and potentially criminal” and labeled another “CROOKED” on his social media platform, urging the attorney general to take action.However, records now demonstrate that Trump engaged in the very behavior he publicly denounced.
In December 1993, Trump signed a mortgage for a “Bermuda style” home in Palm Beach, Florida, explicitly stating it would serve as his principal residence. A mere seven weeks later, he obtained another mortgage for a neighboring seven-bedroom estate, again attesting that it, too, would be his primary residence.
According to available evidence, Trump, who was primarily based in New York at the time, never actually lived in either of these properties. Instead, the homes, situated adjacent to his famed Mar-a-Lago estate, were utilized as investment properties and rented out, aligning with the very scenario his administration later characterized as evidence of fraud.
A local real estate agent told the Miami herald at the time that Trump had “hired an expensive New York design firm” to renovate the properties “to dress them up to the nines and lease them out annually.” Shirley Wyner, a longtime real estate agent who later managed rentals for the two properties, confirmed to ProPublica: “They were rentals from the beginning.” Wyner, who worked with the Trump family for years, added definitively, “President Trump never lived there.”
Legal experts reviewing the records for ProPublica noted the irony of Trump’s dual mortgages. While claiming primary residences on multiple mortgages isn’t always illegal or prosecuted, they asserted that Trump’s loans exceeded the standard his own administration set for identifying potential fraud.
“Given Trump’s position on situations like this, he’s going to either need to fire himself or refer himself to the Department of Justice,” stated Kathleen Engel, a law professor specializing in mortgage finance at Suffolk University. “Trump has deemed that this type of misrepresentation is sufficient to preclude someone from serving the country.”
Generally, mortgages for primary residences offer more favorable terms, such as lower interest rates, compared to those for second homes or investment properties. Experts acknowledge that legitimate reasons exist for having multiple primary-residence mortgages, like relocation for employment, or even clerical errors. However, proving fraudulent intent is crucial, and lenders retain discretion in loan approvals. In Trump’s case, both mortgages were secured from the same lender, merrill Lynch.
In recent months, the Trump administration asserted that simply having two primary-residence mortgages constitutes evidence of criminality. Bill Pulte, director of the Federal Housing Finance Agency, stated earlier this year: “If somebody is claiming two primary residences, that is not appropriate, and we will refer it for criminal investigation.”
The trump administration also targeted Sandra Thompson,a member of the Federal Reserve Board of Governors,whom Trump attempted to remove from her position over her mortgage history. Trump specifically cited Cook’s simultaneous mortgages on properties in Michigan and georgia, mirroring his own situation in Florida. He deemed her actions “potentially criminal” and questioned her “competence and trustworthiness.” Cook is currently suing to block her termination.
The Trump administration also made similar accusations against Democrats Sen. Adam Schiff and Rep.Eric Swalwell, both of whom denied any wrongdoing. ProPublica previously reported that three of Trump’s own Cabinet members had also claimed multiple properties as their primary residences.
Pulte, the Federal Housing Finance Agency director, has maintained that his investigations are not politically motivated, stating that both Republicans and Democrats would be scrutinized for mortgage fraud. However,he has not publicly referred any Republicans for criminal investigation. He did not respond to ProPublica’s questions regarding Trump’s Florida mortgages.
