BREAKING: New York AG Letitia James Referred To Justice Department For Potential Mortgage Fraud

NEW YORK, NY – The U.S. Federal Housing Finance Agency (FHFA) has formally referred New York Attorney General Letitia James to the Department of Justice (DOJ) for potential criminal prosecution related to alleged mortgage fraud. The referral, dated April 14, 2025, and signed by FHFA Director William J. Pulte, outlines concerns over James’s representations in mortgage applications for properties in Virginia and New York.​

Virginia Property Allegation

In August 2023, James reportedly purchased a property in Norfolk, Virginia, declaring it as her primary residence. At the time, she was serving as New York’s Attorney General, a role necessitating primary residence in New York. The FHFA alleges this misrepresentation allowed her to secure more favorable mortgage terms typically reserved for primary residences.​

Brooklyn Property Allegation

Separately, James is accused of misclassifying a Brooklyn property she owns. While official records indicate the building has five units, James allegedly reported it as a four-unit property in mortgage documents. This classification could have enabled her to qualify for certain loan programs and interest rates designated for smaller multi-family dwellings.

Historical Documentation Concern

The FHFA’s referral also references past mortgage documents from 1983 and 2000, where James and her father purportedly identified themselves as “husband and wife” to obtain a mortgage. While this pertains to older transactions, the agency notes it raises questions about the accuracy of her representations in financial documents.

Potential Legal Implications

The FHFA suggests that these actions might constitute violations under federal statutes, including wire fraud, bank fraud, and making false statements to financial institutions. The DOJ has not yet announced whether it will initiate a formal investigation based on the referral.

If the Department of Justice determines that the allegations are supported by clear evidence and that Letitia James knowingly falsified mortgage documents, a prosecution will likely follow – especially given the gravity of the accusations and her role as a top law enforcement official. Public officials are held to higher ethical standards, and any abuse of the system, if proven, would seriously undermine trust in government.

This development comes after James’s prominent legal actions against former President Donald Trump, including a civil fraud lawsuit resulting in a significant judgment against him. The allegations against James have garnered attention, given her role in prosecuting financial misconduct cases.