Swalwell Drops Lawsuit Against FHFA’s Pulte as California Governor Race Heats Up

U.S. Representative Eric Swalwell has dropped his federal lawsuit against Bill Pulte, director of the Federal Housing Finance Agency (FHFA), as his campaign for California governor gains momentum. The decision comes amid growing political scrutiny and a competitive field in the state’s upcoming primary.

The lawsuit, initially filed in late 2025, accused Pulte of improperly accessing Swalwell’s private mortgage records and referring them to the Department of Justice in an alleged criminal investigation. Swalwell claimed the actions violated federal privacy laws and were politically motivated, aimed at retaliating against him for his criticism of the previous administration.

By voluntarily dismissing the case, Swalwell avoids a prolonged legal battle that could distract from his gubernatorial campaign. Court filings indicate that each party will bear its own legal costs, and the dismissal was made without prejudice, leaving open the possibility of future legal action if circumstances change.

The controversy over Swalwell’s mortgage records had drawn national attention, with opponents using the situation to question his political judgment and eligibility for California’s highest office. A separate legal challenge regarding his state residency, which could have affected his ability to run, was recently dismissed by a state court, allowing him to remain on the ballot.

Swalwell’s campaign now shifts fully to the political arena, as he focuses on connecting with voters across the state. Analysts say the decision to drop the lawsuit reflects a strategic move to avoid headlines dominated by legal battles rather than campaign messaging.

Pulte, a Trump-era appointee, has been involved in multiple high-profile referrals of alleged mortgage fraud cases, drawing criticism from both sides of the political spectrum for his use of agency powers. The dismissal of Swalwell’s lawsuit does not address broader concerns about agency conduct but allows the congressman to concentrate on his campaign platform, which emphasizes housing, public safety, and education.

As the California gubernatorial primary approaches, Swalwell faces a crowded field of Democratic and Republican candidates. His ability to navigate legal controversies while maintaining voter confidence will be a key factor in his campaign. By stepping away from the courtroom, Swalwell signals a renewed focus on politics, leaving voters to decide whether his leadership can bring solutions to the state’s pressing challenges.