A federal housing agency referred leftist New York Attorney General Letitia James to the Justice Department for criminal prosecution over alleged actions to obtain more favorable loans on multiple properties she owned.
Federal Housing Finance Agency Director William Pulte said in a letter to the DOJ on Monday that there was evidence that James falsified records over properties she owned in Virginia and Brooklyn, New York, to secure a lower mortgage rate for government-backed loans. Pulte said that James, who aggressively prosecuted Donald Trump during his last presidential campaign, should be investigated for wire fraud, mail fraud, bank fraud, and making false statements to a financial institution.
“Based on media reports, Ms. Letitia James has, in multiple instances, falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms,” Pulte wrote to Attorney General Pam Bondi. “This has potentially included 1) falsifying residence status for a Norfolk, Virginia-based home in order to secure a lower mortgage rate and 2) misrepresenting property descriptions to meet stringent requirements for government backed loans and government assistance.”
In August 2023, James reportedly listed her primary residence as the Norfolk property on federal mortgage documents even though she was “primarily residing in the state of New York” at the time and “required by law to have her primary residence in the state of New York” because of her statewide position, according to Pulte.
“Primary residence mortgages receive more favorable loan terms, including lower interest rates, than secondary residence mortgages. Lenders view secondary residence mortgages as significantly riskier, as a borrower is more likely to continue paying off a primary residence mortgage during any financial hardship,” Pulte wrote.
In the second example, Pulte said that James has listed a Brooklyn property she has owned since 2001 as having only four units, even though it has five.
“A building that exceeds four units must be treated as a multifamily property, and typically has larger down payment requirements and higher interest rates terms—with interest rates being between 0.75-1 percent higher—due to lenders viewing multifamily loans as significantly riskier,” he wrote.
Pulte noted that he attached other documentation from 1983 that he said showed James and her father had signed a mortgage document as husband and wife, which he said “raised concerns about the validity” of her mortgage applications.
In response to the allegations, James accused the Trump administration of weaponizing the government.
“Attorney General James is focused every single day on protecting New Yorkers, especially as this Administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies — no matter who they are,” she said.
Last year, James secured a $454 million civil fraud judgment against Trump and got him banned from doing business in New York for three years for claims that he made misleading financial statements on property evaluations to banks to secure better terms on loans. During the trial, Trump’s defense stood by the evaluations and said that all the loans were repaid.
Republicans praised the Trump administration’s criminal prosecution referral, pointing to James’ statements during her prosecution of Trump that “no one is above the law.”
“Letitia James engaged in some of the most shameful, partisan lawfare against President Trump—based on far less evidence than this,” Senator Tom Cotton posted on X. “No one is above the law.”
