The FBI and US Attorney’s Office in Albany opened an investigation into Letitia James over mortgage fraud.
The Times Union reported:
The FBI and U.S. Attorney’s Office in Albany have opened a formal criminal investigation examining the real estate and mortgage transactions of New York Attorney General Letitia James, according to law enforcement sources briefed on the matter.
It’s unclear why U.S. Attorney General Pam Bondi steered the referral to New York’s Northern District; although James is a statewide elected official with offices in Albany, the transactions involve her personal property purchases and loans that were processed in New York City and Virginia. Some of the transactions also may fall outside the federal statute of limitations, although one of the mortgages involves James’ assertions in loan documents related to her 2023 purchase of a residence in Virginia.
The Trump Administration criminally referred New York Attorney General Letitia James to the Justice Department over accusations of mortgage fraud.
The Federal Housing Finance Agency (FHFA) accused Letitia James of falsifying records, citing a 5-unit property in New York she claimed was only four units in order to get a more favorable loan.
For more than 20 years, Letitia James repeatedly claimed her Brooklyn apartment building was a four-unit property on mortgage applications—despite official records proving it had five.
This is not a minor discrepancy. Lying to the bank about the unit count enabled Letitia James to secure more favorable loans, including a 2011 Home Affordable Modification Program (HAMP) loan that saved her tens of thousands of dollars annually.
Letitia James was able to secure a conforming loan through Fannie Mae/Freddie Mac since they are only available on properties up to 4 units.
According to New York City Department of Finance records, on May 20, 1983, Letitia James and her father, Robert James, took out a real estate loan from Kadilac Funding Ltd. for $30,300 as “husband and wife.” Letitia James’ mother is Nellie James.
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