The Double-Edged Sword Wrapped in Eric Swalwell’s Privacy Lawsuit Against Housing Chief Bill Pulte

U.S. Congressman Eric Swalwell speaking with attendees at the 2019 California Democratic Party State Convention at the George R. Moscone Convention Center in San Francisco, California. PHOTO CREDIT: Gage Skidmore

​Those who live by surveillance cry by surveillance.
 
We wonder how many times politicians on both sides of the aisle will have to get slammed by the very government spying practices they’ve supported before this lesson sinks in.
 
Case in point: Rep. Eric Swalwell (D-CA). Last week, he filed a lawsuit against Bill Pulte, President Trump’s director of the Federal Housing Finance Agency, for accessing and leaking private mortgage records in retaliation for political speech.
 
Pulte has issued criminal referrals to the Department of Justice (DOJ) against Swalwell, New York Attorney General Letitia James, Sen. Adam Schiff (D-CA), and Federal Reserve Governor Lisa Cook on the basis of alleged mortgage fraud. A federal judge dismissed the charges against James, while President Trump used the allegation against Cook to fire her from the Federal Reserve Board (she remains in her job while the Supreme Court reviews the case).
 
Rep. Swalwell’s lawsuit makes an important point:
 
“Pulte’s brazen practice of obtaining confidential mortgage records from Fannie Mae and/or Freddie Mac and then using them as a basis for referring individual homeowners to DOJ for prosecution is unprecedented and unlawful.”
 
We cannot think of any prior use of private mortgage applications to harass political opponents (at least one of them, James, is arguably guilty of using lawfare herself to harass Donald Trump).
 
Pulte’s actions appear to be a flagrant violation of the Privacy Act of 1974, which governs how the government can and cannot handle Americans’ private information. The law, as Swalwell notes, “explicitly forbids federal agencies from disclosing – or even transmitting to other agencies – sensitive information about any individual for any purpose not explicitly authorized by law.”
 
Congress passed the Privacy Act to prevent the creation of a federal database that would create comprehensive dossiers on every American, something we’ve warned is now being attempted. The law specifically forbids agencies from freely sharing Americans’ confidential data gathered for one purpose (such as IRS tax collection), for another purpose (an FBI investigation). Agencies must issue written request justifying any such information sharing.
 
Pulte is anything but transparent.
 
“I’m not going to explain our sources and methods, where we get tips from, who are whistleblowers,” Pulte told the media. This mindset is in keeping with the corrupting spread of the best practices of the intelligence-surveillance state playbook. Today, it is the federal housing agency. We shouldn’t be surprised if tomorrow such “sources and methods” thinking trickles down to federal poultry inspections.
 
Meanwhile, we remain dry-eyed over Rep. Swalwell’s plight.
 
As a member of the House Judiciary Committee, Swalwell argued against – and voted against – the Protect Liberty and End Warrantless Surveillance Act. This bill would have reformed Section 702 of the Foreign Intelligence Surveillance Act by requiring a warrant before the government could access U.S. citizens’ data collected through programs enacted to surveil foreign threats on foreign soil.
 
The Protect Liberty Act would have ended the government practice of using a foreign database to conduct “backdoor searches” on Americans… not unlike, say, a regulatory agency pulling a political opponent’s private mortgage application. The principle of mutually assured payback is something to keep in mind when lawmakers again debate the provisions of Section 702 in April.

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