HousingWireHousingWire
New York Attorney General Letitia James is the target of a criminal investigation related to mortgage fraud, following a referral by Federal Housing Finance Agency (FHFA) Director Bill Pulte, multiple news outlets reported Thursday.
The U.S. Department of Justice alleges that James falsely claimed she intended to make a single-family home in Norfolk, Virginia, her primary residence in a mortgage application, despite serving as attorney general in New York. Primary residence mortgages typically offer more favorable loan terms, including lower interest rates.
James allegedly signed a document in 2023 granting her niece, Shamice Thompson-Hairston, power of attorney to complete the purchase, according to the Washington Post, which cited anonymous sources and obtained records. The Guardian and the Albany Times Union also reported on the matter.
Mortgage fraud has been a key focus of Pulte – a private equity professional, philanthropist and grandson of the late homebuilding icon William Pulte – who has discussed the topic extensively on social media and interviews. He announced via media platform X that the agency is establishing a tip line to report mortgage fraud activity.
“There is no room for fraud in our mortgage markets. None. We will continue to root out frauds and cheats wherever we find it. No one and no company is above the law — no one,” Pulte wrote.
The DOJ investigation into James stems from a criminal referral submitted by Pulte to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche in April.
According to Pulte, James “falsified bank documents and property records to acquire government-backed assistance and loans and more favorable loan terms” by misrepresenting her Norfolk residence. He also accused her of misrepresenting the number of units in a Brooklyn brownstone she purchased in 2001, the Washington Post reported.
James’s defense argues any errors are paperwork mistakes. Her attorney, Abbe Lowell, also stated on Thursday that, “This appears to be the political retribution President Trump threatened to exact that AG Bondi assured the Senate would not occur on her watch,” referencing statements Bondi made during her Senate confirmation hearing, according to The Washington Post.
“If prosecutors are genuinely interested in the truth, we are prepared to meet false claims with facts,” Lowell added. According to Lowell, Pulte “cherry-picked” one mistake in an application package and other documents show that she would not be residing in the Norfolk home.
James had told the mortgage loan originator that the property in Norfolk would not be her primary residence. She also filled out a Uniform Residential Loan Application and checked a box indicating that the Norfolk property was not her primary residence.
“And yet, in the hundreds of pages that comprise the Norfolk loan application and other mortgage documents, Director Pulte points to a two-page power of attorney that was clearly mistaken and failed to reference Ms. james’ clear and repeated accurate statements,” Lowell wrote in his letter.
Regarding the Brooklyn property, James wrote that she purchased the home in 2001 with her ailing mother to give family members a place to live. She and her family members have lived there since 2001. The home is also listed in city records as a four-family property, Lowell wrote in his letter.
James’s lawyer says the case is political retribution given her role in lawsuits brought by state attorneys general against both Trump administrations to block key initiatives. She also filed a lawsuit against Trump over allegedly fraudulent business practices—a case currently under appeal by the president.
