Trump Admin Slams Nemesis With Criminal Referral Over Alleged Mortgage Fraud
Federal housing officials have issued a criminal referral against New York Attorney General Letitia James, accusing her of mortgage fraud related to properties in Virginia and New York.
The Federal Housing Finance Agency (FHFA) Director William Pulte sent the referral to Attorney General Pam Bondi and the Department of Justice, claiming James “falsified records” to obtain a home loan in Virginia while serving as New York’s attorney general.
James allegedly misrepresented a Virginia home as her “principal residence” on loan documents, according to the referral, potentially securing more favorable mortgage terms than she would have otherwise qualified for.
“Based on media reports, Ms. Letitia James has, in multiple instances, falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms,” the criminal referral states.
The document outlines two specific allegations: “1) falsifying residence status for a Norfolk, Virginia-based home in order to secure a lower mortgage rate and 2) misrepresenting property descriptions to meet stringent requirements for government backed loans and government assistance.”
The FHFA’s accusations extend beyond the Virginia property.
James purchased a multi-family building in Brooklyn but “consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications,” according to Pulte’s letter.
The referral letter also raises questions about real estate transactions dating back decades.
The New York Post outlined that Pulte claims James purchased properties with her father as a cosigner in both 1983 and 2000, but the documents allegedly identified the pair as “husband and wife.”
“While this was a long time ago, it raises serious concerns about the validity of Ms. James representations on mortgage applications,” Pulte wrote in the referral.
The criminal referral comes amid ongoing legal battles between James and President Donald Trump.
As New York’s attorney general, James has led several high-profile investigations and legal actions against Trump and his business interests.
The Trump administration’s move to request a criminal investigation into James marks a significant escalation in the contentious relationship between the attorney general and the president.
James made headlines just two weeks ago when she raised her voice while railing against the president while defending her ongoing legal efforts against him.
Drawing on civil rights icon Dr. Martin Luther King Jr., James began by stating that a “stone of hope” motivates her daily fight against Trump.
She told the audience, “Donald Trump, I’m not afraid of you,” presenting herself as a warrior for justice standing against what she apparently perceives as corruption and ignorance.
James claimed that Trump embodies “sincere ignorance and conscientious stupidity.”
She insisted that she would not betray her ancestors and vowed to use the legal system both as a tool of defense and attack against him.
The attorney general also spoke forcefully in favor of diversity, equity and inclusion (DEI) policies.
NY AG Letitia James goes on bizarre rant about President Trump: “I’m covered by the blood. I’m not afraid of Donald Trump. You can come after me, but nothing formed against me will perish!” pic.twitter.com/rSDFhTwrnj
— TheBlaze (@theblaze) April 4, 2025
James notably won a major court ruling forcing Trump to pay over $450 million in a civil fraud case in 2024. Trump famously responded quickly, posting a $175 million bond through Knight Specialty Insurance Company to appeal the judgment and prevent the state from seizing his assets.
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