The Federal Housing Finance Agency (FHFA) has referred New York Attorney General Letitia James to the U.S. Department of Justice for potential criminal prosecution, alleging she committed mortgage fraud.
NEWSWEEK
The Federal Housing Finance Agency (FHFA) has referred New York Attorney General Letitia James to the U.S. Department of Justice for potential criminal prosecution, alleging she misrepresented her primary residence status on a property in Norfolk, Virginia, and inaccurately reported the number of units in a Brooklyn property. The FHFA claims these misrepresentations were made to secure more favorable loan terms.
James has dismissed the allegations as politically motivated, asserting they are in retaliation for her office’s successful civil fraud case against former President Donald Trump. In that case, James accused Trump of inflating asset values to secure favorable financial terms, resulting in a $464 million penalty. Trump has appealed the judgment.
The referral has heightened political tensions, with critics claiming federal agencies are being weaponized against political opponents. The U.S. Department of Justice has not commented on whether charges will be pursued.