New York Attorney General Letitia James is facing serious allegations of mortgage fraud—claims that could carry criminal liability and continue undermine her credibility as the state’s top law enforcement official.
The allegations come from Bill Pulte, the newly confirmed Director of the Federal Housing Finance Agency (FHFA), who says James may have falsified mortgage and property records over decades to secure favorable loan terms.
Pulte, confirmed to lead the FHFA in March 2025 after a bipartisan Senate vote, now oversees the regulation of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks—institutions central to U.S. housing finance.
WATCH: Democrats like NANCY PELOSI and LETITIA JAMES EXPOSED on The Patriot Perspective—uncovering MAJOR insider trading & CORRUPTION scandals.
The Department of Justice maintains a conviction rate of roughly 98%, meaning it is exceedingly rare for prosecutors to pursue a case they believe they cannot win. That standard makes the current investigation especially significant.
The fact that it is being pursued so seriously suggests a clear necessity for scrutiny, supported by substantial evidence warranting federal attention.
According to Pulte, one of the most significant examples involves a home James purchased in Norfolk, Virginia, in August 2023. At the time, she was serving as New York’s attorney general—a role that legally requires her to maintain her primary residence in New York.
Pulte alleges that James granted an associate, Shamice Thompson-Hairston, power of attorney to designate the Norfolk property as her “principal residence.”
Mortgage applications for the property reportedly list her intent to live there, which can qualify borrowers for lower interest rates than those available for second homes or investment properties.
If James never intended to reside there, this could constitute a false statement to a financial institution.
The allegations extend to an earlier property purchase in Brooklyn. In 2001, James acquired a five-unit apartment building but, according to Pulte, obtained financing designed for buildings with four units or fewer.
“Spanning the last two decades, Ms. James has consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications,” Pulte wrote.
By classifying the building as four units instead of five, she may have qualified for a conforming loan with better interest rates—saving potentially thousands of dollars in borrowing costs.
Pulte’s timeline also includes an incident dating back to 1983, in which James and her father signed mortgage documents identifying themselves as “husband and wife.”
The implication, according to Pulte, is that this false relationship designation may have been used to meet specific lender requirements or obtain more favorable loan terms.
“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.
He added that such conduct could lead to federal charges including wire fraud, mail fraud, bank fraud, and making false statements to a financial institution—offenses that carry significant prison sentences if proven.
The allegations have a sharp political dimension because of James’s history. She campaigned on a pledge to “get Trump” and ultimately filed a civil lawsuit accusing the president of inflating property valuations to obtain better loans and insurance terms.
Yet she now claims that the DOJ’s move against her is politically motivated—despite having openly declared during her campaign that, if elected attorney general, she would go after Trump.
If those documents show misrepresentation of occupancy status, property size, or borrower information, prosecutors could view the case as straightforward. Proving intent, however, remains essential and could be more challenging if James offers plausible explanations for the discrepancies.
If the public perceives that she engaged in the same type of misrepresentation she prosecuted others for, it could severely erode her political standing and credibility.
James already has one of the weakest records in New York’s history as attorney general, surviving politically only because of her high-profile prosecutions against Trump. This case may finally bring accountability.
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