The Trump administration’s Federal Housing Finance Agency (FHFA) referred New York Attorney General Letitia James to the Department of Justice (DOJ) on Monday, recommending prosecution over alleged mortgage fraud.
In a referral made Monday by William J. Pulte, director of the Federal Housing Finance Agency (FHFA), James faces allegations of falsifying bank documents and property records to improperly acquire government-backed assistance and preferential mortgage rates.
The letter was addressed directly to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, according to documents obtained by Just the News.
“In the course of exercising U.S. Federal Housing’s authority under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, U.S. Federal Housing has identified matters that are appropriate for referral to the U.S. Department of Justice for consideration of criminal prosecution,” Pulte wrote in the letter.
The allegations outlined in the referral center around two separate real estate transactions involving James, who has been a prominent political foe of former President Donald Trump.
The first instance occurred in August 2023, when James allegedly falsified documents related to the purchase of a home in Norfolk, Virginia. In mortgage paperwork and a Fannie Mae/Freddie Mac Form 3047, James represented this property as her primary residence despite simultaneously serving as New York’s attorney general—a position requiring residency in the state of New York.
“On August 30 and 31, 2023, through her attorney, Ms. James purchased this property in Norfolk, VA,” Pulte detailed in his letter. “In a Fannie Mae/Freddie Mac Form 3047 and in mortgage documents, she reaffirmed this would be her primary residence, despite being a statewide public office holder in the state of New York at that same time and primarily residing in the state of New York.”
Mortgage lenders typically regard loans for primary residences as less risky, since borrowers facing financial trouble are expected to prioritize payments on their main homes over secondary properties.
According to the FHFA, misrepresenting residency status constitutes fraud because it improperly qualifies borrowers for lower interest rates and favorable loan terms.
In addition to the Virginia property, James is accused of falsifying property records for a Brooklyn, New York residence. According to the referral letter, James allegedly misrepresented the number of units in the Brooklyn property, declaring it as a four-unit building rather than five units.
This discrepancy potentially allowed her to obtain better mortgage rates and assistance from the Home Assistance Modification Program (HAMP), a government-backed initiative aimed at mortgage relief.
“It appears that Ms. James may have listed the Brooklyn, NY property as four units instead of five units in order to meet the conforming loan requirements, and thus receive better interest rates,” Pulte wrote. He added, “Ms. James also appears to have used this same falsification in order to receive mortgage assistance through [HAMP].”
The accusations cited in the FHFA’s letter align with information first published by the investigative outlet White Collar Fraud, which initially reported the alleged misconduct involving James’s property dealings.
The referral escalates a long-standing political conflict between James and Trump, who have frequently clashed. James notably led the prosecution against the Trump Organization in 2023 and 2024, accusing the former president’s business empire of inflating property values to deceive lenders. That case resulted in several hundred million dollars in fines against Trump, his family members, and former Trump Organization executives.
The DOJ will now review the FHFA’s referral and the attached evidence to determine whether formal criminal charges against James will be pursued.