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Trump Refers New York Attorney General Letitia James for Possible Mortgage Fraud
Trump Administration Sends DOJ Referral for Letitia James :
The Trump administration has referred New York Attorney General Letitia James to the U.S. Department of Justice (DOJ) over allegations of mortgage fraud. This referral was made by William Pulte, the newly appointed director of the Federal Housing Finance Agency (FHFA), in a letter sent on April 15, 2025.
According to the letter, James allegedly made false statements on multiple mortgage applications, raising serious questions about potential wire fraud and financial misrepresentation.
Claims of False Information on Mortgage Applications
The FHFA's referral points to two real estate transactions involving Letitia James:
1. Virginia Property Purchased in 2023
James allegedly bought a home in Virginia in 2023 and claimed it as her “primary residence” to get better loan terms. However, she was actively serving as New York’s Attorney General during that time and was living in New York, not Virginia. If proven, this could mean she misrepresented her living situation on a federal mortgage application.
2. Brooklyn Property Bought in 2001
In a second case, James is accused of misclassifying a Brooklyn property in 2001. She allegedly said the property had four units instead of five—possibly to qualify for more favorable mortgage conditions, since loans for four-unit homes are usually easier to get and come with better rates.
Alleged Family Misrepresentation on Forms
The FHFA also pointed to older mortgage forms from 1983 and 2000, where James reportedly listed her father as her husband. The reason for this misrepresentation isn’t clear, but it could be considered fraud if it affected the loan terms or approval.
Possible Legal Consequences
If the allegations are confirmed, James could face charges such as:
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Wire fraud
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Making false statements to a financial institution
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Mortgage application fraud
These are serious federal offenses and could lead to significant legal penalties if she is charged and convicted.
Political Backdrop Adds Tension
This referral comes just as Letitia James' office begins a separate investigation into alleged insider trading tied to President Trump. The inquiry focuses on suspicious stock trades that occurred just before the White House announced a pause on tariffs—moves that caused market shifts.
Trump has publicly slammed James, calling her “corrupt” and urging her to resign. The ongoing tension between them adds a political angle to the legal issues.
No Official Response Yet
As of now, neither the Department of Justice nor Letitia James has issued a formal statement. Her office has also not commented on the allegations outlined in the referral letter.
