New York Attorney General Letitia James has been accused of mortgage fraud.
In a letter, the Federal Housing Finance Agency (FHFA) referred James, a Democrat who has served as the state attorney general since 2019 to U.S. Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, alleging she falsified records to obtain a mortgage in 2023.
James has denied all wrongdoing. Newsweek contacted James’ office via website form for comment.
What Is James Accused Of?
FHFA Director William J. Pulte said James claimed on a mortgage application in 2023 that a house in Norfolk, Virginia, was her primary residence, despite her position requiring New York residency.
The 1,450-square-foot single-family home in Norfolk was built in 1947 and has three bedrooms and one bathroom, per the deed. It was purchased for $240,000, with a $219,780 mortgage.
Pulte also claimed that she falsely stated the number of units in a Brooklyn property she owns by saying it had four units, not five, in 2021. He also claimed that James purchased another property with her father as co-signer but listed them as husband and wife in 1983 and 2000.
Pulte alleges wire fraud, mail fraud, bank fraud and false statements to a financial institution.
“Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte wrote in his letter.
It came after White Collar Fraud first reported on the Virginia real estate transaction.
Is This Connected To Donald Trump?
James gained attention for her various legal battles with President Donald Trump and his family, notably a New York judge’s ruling in 2024 ordering Trump to pay a $454 million civil fraud judgment after James sued him for falsely inflating the value of his property.
She is currently leading a coalition of Democratic state attorneys general in suing the Trump administration to stop it from cutting off access to more than $1 billion in funding to address the long-term effects of the COVID-19 pandemic on K-12 students. Some critics have raised questions about whether the referral is retaliatory. But FHFA officials deny such claims.
Trump has commented on the case, writing on Truth Social: “Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY. Everyone is trying to MAKE NEW YORK GREAT AGAIN, and it can never be done with this wacky crook in office.”
How Has Letitia James Responded?
James has not been formally charged and has denied any wrongdoing.
“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,” a spokesman from her office said in a statement to the New York Post.
What Happens Next
Whether the Department of Justice or other bodies like congressional committees open a formal investigation or pursue charges remain to be seen.
Legal analysts said there could be legal and political ramifications because of the accusation.
“This is a potential problem for Letitia James,” former federal prosecutor Neama Rahmani told Newsweek. “There’s potential mortgage fraud because your mortgage rates for your primary residence are gonna be lower than your mortgage rate for a secondary resident, like the rental or vacation home, so she said this with a primary residence to get a better mortgage.”
New York City trial attorney Nicole Brenecki told Newsweek that while the Trump civil case may not have legal ramifications, it could have political ones.
“Ms. James brought a high-profile case against Donald Trump for civil fraud,” Brenecki said. “Signing a false declaration to obtain any benefits generally constitutes civil fraud. As such, Ms. James will likely be scrutinized and criticized by her political opponents for doing exactly what she accused Trump of in that case.”
