Federal Housing Finance Agency Director Bill Pulte levied accusations of mortgage fraud against New York State Attorney General Letita James in a letter submitted to the Department of Justice.
Citing “media reports” and his agency’s authority under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, Pulte claimed to have “identified matters that are appropriate for referral to the U.S. Department of Justice for consideration of criminal prosecution.”
The letter cited reports about James’ allegedly fraudulent activities involving two properties – one in New York in 2001 and one in Virginia in 2023.
“Letita James has, in multiple instances, falsified bank documents and property records on multiple occasions to acquire government backed assistance and loans and more favorable loan terms,” Pulte wrote. “This has potentially included 1) falsifying residence status for a Norfolk, Va.-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.”
James was thrust into the national spotlight after a New York judge ordered then-former President Donald Trump to pay a $454 million civil fraud judgment in 2024 after James accused him of falsely inflating the value of his property.
Pulte went on to contend “[t]here are unfortunately too many examples of individuals who commit fraud or mortgage fraud,” noting a fraud conviction last year against the former Baltimore city attorney and another case involving a St. Louis man found to be fraudulently obtaining mortgages the week prior to his letter.
Pulte’s fraud claims against James came roughly a week after he authorized the firing of more than 100 staffers at Fannie Mae who were allegedly “caught engaging in unethical conduct, including facilitating fraud” against the company.
In response, Fannie Mae CEO Priscilla Almodovar published a statement thanking Pulte “for his empowering of Fannie Mae to root out unethical conduct, including anyone facilitating fraud.”