According to a letter obtained by Only the News, the federal government’s main cover mortgage company has referred New York Attorney General Letitia James, a long-time adversary of President Donald Trump, to the U.S. Justice Department for possible trial over alleged loan scam.
Attorney General Pam Bondi and her deputy Todd Blanche received the referral on Monday from the U.S. Federal Housing Finance Agency ( FHFA ), which director William J. Pulte said supported earlier media reports alleging irregularities in a number of loans James obtained, including for a property in Virginia.
According to Pulte,” U.S. Federal Housing has identified things that are ideal for renvoi to the U.S. Department of Justice for thought of criminal prosecution in the course of exercising its power under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.”
According to the media reports, Ms. Letitia James has repeatedly fabricated bank records and property information to obtain government-backed loans and grants with better payment conditions, the text continued. This could include 1 ) falsifying residence status for a Norfolk, Virginia home in order to get a lower mortgage rate 2 ) misrepresenting property descriptions to meet stringent lending and assistance standards.
The appointment makes reference to two dealings that could be fraudulent.
According to Pulte, James allegedly purchased a house in Norfolk, Virginia, two years ago, and indicated that it was her main residence despite working full-time as the attorney general in New York.
” On August 30 and 31, 2023, Ms. James purchased this home in Norfolk, Virginia, through her counsel. She reaffirmed that this would be her principal residence in a Fannie Mae/Freddie Mac Form 3047 and in lease documents, even though she held provincial public office in New York at the time and mostly resided in the state of New York, according to the text.
In a subsequent occasion, James was charged with understating the number of housing products in a Brooklyn home in an ostensible try to get it treated with a lower mortgage interest rate, according to the letter.
