New York Attorney General Letitia James is under federal scrutiny following a formal criminal referral issued by the U.S. Federal Housing Finance Agency (FHFA), alleging she falsified key mortgage documents and misrepresented property information to obtain favorable loan terms. The case, detailed in a federal letter dated April 14, 2025, is supported by investigative work from forensic accountant Sam E. Antar and now sits before the U.S. Department of Justice for potential criminal prosecution.
According to the FHFA’s Director William J. Pulte, James may have committed violations of multiple federal laws, including wire fraud, bank fraud, and false statements to financial institutions under 18 U.S.C. §§ 1341, 1343, 1344, and 1014. The charges stem from two separate properties—one in Virginia and the other in Brooklyn—where James allegedly manipulated mortgage applications and occupancy declarations to gain access to government-backed loans and reduced interest rates.
A Trail of Paperwork
Antar’s investigation, built on public records, court filings, mortgage documents, and property permits, raises serious ethical and legal questions about James’s conduct. His findings show a consistent pattern of discrepancies and misstatements across nearly two decades.
In 2023, James purchased a home at in Norfolk, Virginia. In legal filings, including Fannie Mae/Freddie Mac Form 3047, she designated this property as her “primary residence”—a classification that qualifies borrowers for lower interest rates. However, as a statewide elected official in New York, James is legally required to maintain her primary residence in New York. Complicating matters further, a New York City building permit dated July 15, 2024, lists her Brooklyn home as “James Residence,” confirming it remained occupied during that time.
The FHFA notes that mortgages for secondary residences typically come with higher interest rates—often 0.25% to 0.50% more—due to increased lending risks. Misrepresenting a second home as a primary residence to receive more favorable terms is considered mortgage fraud.
Brooklyn Misrepresentation
The scrutiny doesn’t end in Virginia. At the center of the second set of allegations is James’s long-held property at 296 Lafayette Avenue in Brooklyn, NY. Records show the building has had a five-unit occupancy classification since at least 2001. Yet, James has repeatedly described the property as a four-unit building on mortgage applications, building permits, and filings for government assistance, including a 2011 application under the Home Affordable Modification Program (HAMP).
That misclassification may have enabled her to obtain conforming loans through Fannie Mae and Freddie Mac, which are only available for properties with four or fewer residential units. These loans typically offer better interest rates and terms designed to assist lower- and middle-income homeowners.
The FHFA also documented a 2019 refinance of the Brooklyn property where the same four-unit claim was used. According to the agency, the continued misrepresentation likely allowed James to bypass stricter lending criteria that would have applied to a five-family dwelling—including higher interest rates, larger down payments, and commercial loan requirements.
A Pattern of Falsification
Further undermining James’s credibility are historic filings dating back to the 1980s. In both 1983 and 2000, James signed mortgage applications listing her and her father as “husband and wife”—a legal misstatement the FHFA says was used to meet mortgage approval requirements.
Though older, these examples suggest a long-standing pattern of falsifying information for financial benefit. The FHFA compared this case to recent high-profile mortgage fraud prosecutions, such as the conviction of former Baltimore State’s Attorney Marilyn Mosby for similar misrepresentations. So that means there is already established case law if James is actually charged.
Political Fallout
The criminal referral lands at a politically charged moment. James has played a high-profile role in targeting Donald Trump and other political figures. Ironically, she now faces a legal scenario similar to those she has publicly championed. The FHFA’s referral to Attorney General Pam Bondi and Deputy AG Todd Blanche has triggered bipartisan calls for accountability, especially given James’s top law enforcement role in New York State.
As of now, Letitia James has not publicly responded to the criminal referral or the findings laid out in the FHFA’s letter. However, the charges, if pursued, could mark a turning point not only in her political career but in public trust in the office she holds.
The investigation underscores a broader issue: that no one—not even a state’s chief legal officer—is above the law. With court filings, property records, and mortgage documents painting a detailed picture of alleged fraud, the coming months could determine whether James’s legal fate mirrors that of other public officials who misused the public trust for personal financial gain.
FHFA LETTER ON INVESTIGATION OF NYSAG TISH JAMES by damonkjones on Scribd
4 Comments
Nobody is going to manage to put the toothpaste back in the tube on this one. Nobody.
Your article would have been more informative had it noted a prosecution of Marilyn Mosby for essentially what James is alleged to have done. You also could have noted that the New York bar may open an investigation.
Yes I did mention the Mosby case. I said, Baltimore State’s Attorney Marilyn Mosby for similar misrepresentations. So that means there is already established case law if James is actually charged. As for the NYS Bar, I believe it premature because there are no official charges. Thank you for your comment
Well written article! No partisan slant, or biased journalism, just pure facts! The way news reporting should be!