The case questions the accuracy of mortgage and property documents
New York attorney general Letitia James has been referred to federal authorities for potential mortgage fraud related to properties in Brooklyn and Norfolk, Virginia.
The allegations, first reported by CBS News, involve questions about James’s residency status and property classifications tied to loan applications.
Federal Housing Finance Agency (FHFA) director William Pulte submitted the referral to US attorney general Pam Bondi, claiming James may have falsified documents to obtain more favorable loan terms on both properties.
The case raises concerns about the accuracy of information James reportedly provided on mortgage forms and property records over a period of years.
According to Pulte, James granted power of attorney in 2023 to Shamice Thompson-Hairston for a property in Norfolk. The document allowed the Virginia home to be listed as James’s primary residence, despite her official role as New York’s attorney general, which requires primary residence within the state. Pulte alleges this designation may have helped James secure mortgage rates intended for owner-occupied homes.
In another instance, Pulte alleges James purchased a five-unit property in Brooklyn in 2001 while applying for a loan designed for buildings with four or fewer units.
The referral claims James repeatedly identified the property as having only four units in mortgage and permit applications. According to Pulte, this misrepresentation may have allowed her to access conforming loan terms not typically available for five-unit residences.
The referral also cites a 1983 mortgage document where James and her father reportedly signed as husband and wife. While the incident may fall outside the statute of limitations, Pulte included it to illustrate what he described as a pattern of inaccurate filings.
The letter suggests the actions could lead to potential violations, including mail fraud, wire fraud, bank fraud, and making false statements to financial institutions. Bondi confirmed to CBS News that her office is reviewing the referral.
James has not been charged. A spokesperson said the attorney general remains focused on her work and called the allegations politically motivated.
“She will not be intimidated by bullies — no matter who they are,” the spokesperson said.
James previously sued former President Donald Trump for alleged civil fraud. That case resulted in a judgment of more than $500 million in penalties and interest.
Should officials be held to stricter standards in mortgage-related matters? Share your thoughts in the comments.
