On Tuesday, April 15th, Letitia James, New York’s Attorney General, faced possible prosecution over claims related to mortgage fraud. The Federal Housing Finance Agency (FHFA) issued a criminal referral to the Department of Justice (DOJ), accusing James of altering documents concerning mortgage applications.
In a letter directed to Florida’s Attorney General Pam Bondi, FHFA Director William Pulte stated that James allegedly misrepresented her primary residence to obtain better mortgage conditions. In particular, James is said to have claimed a property in Virginia as her main home in 2023 while holding the position of New York’s Attorney General. As a public official, she is obligated to declare her principal residence as being in New York, raising suspicions that this misrepresentation may have helped her secure a more favorable loan.
Additionally, James is under scrutiny for misreporting a property she bought in Brooklyn. According to reports, she identified it as a four-unit building in both mortgage papers and building permit requests, even though the structure actually comprises five units. Pulte pointed out that these inaccuracies could have permitted James to obtain a different and more favorable loan rate.
Pulte also referenced documents from 1983 and 2000, where James and her father appeared as co-signers, identified as “husband and wife.” Despite being outdated, the FHFA claims this raises doubts about the correctness of previous mortgage submissions.
The referral indicates that the accusations could lead to charges of wire fraud, mail fraud, bank fraud, and providing false information to a financial institution.
This criminal referral follows James’ well-known civil fraud lawsuit against President Donald Trump. This case resulted in a judgment of $454 million, focusing on allegations of financial misrepresentation and inflated property assessments. James’ efforts in this case received nationwide attention and heightened her dispute with Trump and his associates.
The Justice Department has not issued any statements regarding whether it intends to act on the referral.
