New York Attorney General Letitia James, known for her high-profile legal battles against Donald Trump, is now under federal scrutiny following a criminal referral alleging mortgage fraud. The Federal Housing Finance Agency (FHFA) has referred James to the Department of Justice, claiming she falsified documents to secure more favorable home loans—a move that has ignited political tensions and public intrigue.
The allegations center on two key real estate transactions. Investigators claim James misrepresented a property in Norfolk, Virginia, as her “primary residence” in, despite her legal obligation to maintain primary residency in New York as the state’s attorney general. This classification could have allowed her to access lower interest rates typically reserved for owner-occupied homes. Additionally, the FHFA alleges that James misrepresented a Brooklyn property as a four-unit dwelling in, potentially qualifying for a different mortgage product than a five-unit property would allow.
James’ office has strongly denied the charges, calling the referral a politically motivated attack and accusing the Trump administration of weaponizing federal agencies in retaliation for her role in prosecuting Trump and his businesses. The Department of Justice has not yet commented on whether it will pursue charges.
As the case unfolds, the spotlight remains on James—a figure who has built her reputation on holding others accountable—now facing serious questions about her own conduct in the real estate arena.
