For months, the Trump administration has accused political rivals of mortgage fraud, specifically for claiming more than one primary residence on their mortgage documents. President Donald Trump has publicly labeled opponents as deceitful and criminal for this practice.
However, newly uncovered records reveal that Trump himself signed two mortgages on neighboring Florida homes, each stating the property would be his principal residence. These purchases occurred just weeks apart in late December and early January.
The two properties, located next to Mar-a-Lago in Palm Beach, were reportedly never used as Trump’s main homes. Instead, evidence shows they were investment properties rented out from the beginning, according to news reports and interviews with Trump’s longtime real estate agent.
Mortgage experts said Trump’s actions mirror the fraud accusations made by his administration toward others. Kathleen Engel, a law professor specializing in mortgage finance, noted the irony: “Trump’s two loans exceed the low bar the administration has set for mortgage fraud.”
Typically, a primary residence mortgage offers lower interest rates and benefits unavailable to second homes or rental properties. While owning multiple primary residences at once can occasionally be legal, experts highlight the key factor is whether the borrower intentionally misrepresented their status to the lender.
In contrast, the Trump administration has recently taken a hard line, declaring simultaneous primary residence claims as grounds for criminal investigation. Federal Housing Finance Agency Director Bill Pulte stated such cases “are not appropriate” and warrant referrals for prosecution.
When questioned, Trump declined to comment, and a White House spokesperson argued that having two mortgages from the same lender disproves any fraud claim. The spokesperson dismissed the report as a political attack lacking basis.
At the time of these mortgages, Trump was undergoing financial difficulties and pushing to transform Mar-a-Lago into a private club. The mortgages, both from Merrill Lynch, included occupancy clauses requiring Trump to reside in each home, but records list Trump’s address as Trump Tower in New York.
These Florida mortgage transactions share characteristics with cases the Trump administration labeled fraudulent against political figures like New York Attorney General Letitia James. She was accused of claiming a second home as an investment property to gain favorable loan terms, charges she has denied.
Though Trump’s loans were paid off decades ago and outside the statute of limitations for fraud prosecution, the revelations raise questions about his administration’s credibility in pursuing mortgage fraud allegations. The situation highlights a tension between legal technicalities and ethical considerations in mortgage representations.
Read more at: www.propublica.org-
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