In a recent investigation conducted by ProPublica, records have emerged revealing that former President Donald Trump signed mortgage documents during the early 1990s, establishing two separate Florida properties as his principal residences. This practice has been labeled as “mortgage fraud” by Trump himself when referring to actions taken by political adversaries, raising questions about the consistency of his administration’s stance on such matters.
Documents indicate that Trump secured mortgages for two adjacent homes in Palm Beach within weeks of each other, in late 1993 and early 1994. Despite pledging that both properties would serve as his primary dwellings, he reportedly rented them out as investment properties. While there is no indication that this activity was illegal, the concept of proving intent is pivotal in any fraud allegations. Trump’s remarks regarding similar situations have positioned them as “deceitful and potentially criminal,” particularly in relation to federal mortgage fraud charges against figures such as Federal Reserve governor Lisa Cook.
The Trump administration has pursued legal actions against several Democratic officials, including New York Attorney General Letitia James, Senator Adam Schiff, and Congressman Eric Swalwell, based on similar allegations. James herself faced charges after claiming her Virginia property as a second home while subsequently renting it out. Cook’s situation mirrors Trump’s in that she signed two primary residence mortgages just weeks apart before being dismissed from her position by the former president, who condemned her actions as indicative of incompetence and gross negligence in financial matters.
In 1993, Trump’s real estate agent indicated to the Miami Herald that both properties would be leased annually. Shirley Wyner, who served as the rental agent for the homes, confirmed that Trump never resided in either property. According to Kathleen Engel, a law professor with expertise in mortgage finance, Trump’s loans surpass the threshold for fraudulent conduct established by his own administration.
The White House defended Trump’s mortgage transactions, asserting that both loans were obtained from the same lender, Merrill Lynch, and denounced the ProPublica story as a politically charged attack. A spokesperson emphasized that Trump has not violated the law. Bill Pulte, director of the Federal Housing Finance Agency, who has been at the forefront of the administration’s mortgage fraud investigations, stated earlier that claiming two primary residences would warrant a criminal investigation. Nevertheless, Pulte has not publicly pursued similar investigations against Republican officials despite the emergence of comparable mortgage situations among several Trump cabinet members.
The loans in question financed two properties on Woodbridge Road near Mar-a-Lago, amounting to $525,000 and $1.2 million. Each mortgage came with standard occupancy clauses that required Trump to establish residency within 60 days and to live in the properties for at least one year. However, records indicate that Trump remained at his primary residence, Trump Tower in Manhattan, during this period, not officially changing his permanent residence to Florida until 2019. Advertising materials from the mid-1990s confirm that both homes were marketed as rentals, a fact that contradicts Trump’s mortgage commitments.
ProPublica also noted that both mortgages have been fully paid off, and any potential violations regarding them would likely fall outside the statute of limitations for mortgage fraud. When approached by a reporter to comment on the resemblance of his mortgage activities to those he has accused others of, Trump reportedly disconnected the call.
