The FHFA has referred New York Attorney General Letitia James to the Justice Department for alleged mortgage fraud.
FHFA Director William Pulte wrote to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, alleging that James “falsified” records to secure home loans for a Norfolk, Virginia, property she claimed was her “principal residence” while working as a New York prosecutor.
She also purchased a five-family home in Brooklyn and “consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications,” according to the letter.
Pulte stated that because she listed the unit as a four-unit dwelling rather than five, she could have reduced her mortgage rate by up to 1% and had lower monthly payments under the federal Home Assistance Modification Program.
“Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” a spokesperson said.
Pulte also allegedly attached several documents detailing how James purchased another property with her father as a co-signer in 1983 but listed the couple as “husband and wife” in 2000.
“While this was a long time ago, it raises serious concerns about the validity of Ms. James representations on mortgage applications,” she wrote.
James has sued the Trump administration several times, and Trump supporters accuse her of using her position to target him.
On Monday, Trump demanded James’ resignation “immediately,” citing a report outlining allegations of real estate fraud.
