In a Monday night letter, William J. Pulter, director of the U.S. Federal Housing Agency (FHFA), referred New York Attorney General Letitia James to the Department of Justice for prosecution of mortgage fraud.
My colleague Athena Thorne wrote over the weekend:
We’re talking about Letitia “No one is above the law” James, a poster child for the weaponized justice system that tried to sandbag and impoverish Donald Trump and put him away for the rest of his life. As they say, if you’re going to take a shot at the king, you better not miss. Or, in this case, you better not have an apparent pattern of fraudulent real estate transactions.
Now, it appears, James’s chickens are coming home to roost.
“Pursuant to my authority as Director of the U.S. Federal Housing Finance Agency (“U.S.Federal Housing” or “FHFA”), I am referring the matter below,” Pulter wrote. “As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities and the security and stability of the U.S. mortgage market.”
Pulter said the agency has “identified matters that are appropriate for referral to the U.S. Department of Justice for consideration of criminal prosecution.”
He added that, 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 DOJ will investigate accusations of:
- Falsifying residence status for a Norfolk, Virginia-based home in order to secure a lower mortgage rate, and
- Misrepresenting property descriptions to meet stringent requirements for government backed loans and government assistance
“In a FannieMae/Freddie Mac Form 3047 and in mortgage documents, she reaffirmed [the Norfok, Va., home] would be her primary residence, despite being a statewide public office holder in the state of New York at that same time and primarily residing in the state of New York,” the referral letter explains.
Here’s why that’s a problem: The state of New York requires the attorney general to live in the state. She allegedly lied on the application forms, claiming the Norfolk home would be her primary residence. In addition, Pulte alleged, James may have listed a property in Brooklyn, N.Y., as “four units instead of five units in order to meet the conforming loan requirements, and thus receive better interest rates.”
Pulte concluded, “Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms.” The “misconduct” could violate multiple federal laws, including wire fraud, mail fraud, and bank fraud. In addition to state laws.
Read the full letter:
FHFA Letitia James Referral Letter by PJ Media on Scribd
