April 16, 2025 / 11:33 AM EDT / CBS New York
New York Attorney General Letitia James has been referred for federal criminal prosecution for alleged mortgage fraud.
William Pulte, director of the Federal Housing Finance Agency (FHFA), wrote a letter obtained by CBS News New York to U.S. Attorney General Pam Bondi alleging that James “has, in multiple instances, falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms.”
Details of the allegations
Pulte alleges James may have falsified her residence status at a home in Norfolk, Virginia, to get a better mortgage rate.
According to Pulte, in 2023 James granted Shamice Thompson-Hairston power of attorney to make the Norfolk property, purchased in August of that year, her “principal residence,” despite James actually living and serving as attorney general in New York at the time.
“At the time of the 2023 Norfolk, VA property purchase and mortgage, Ms. James was the siting Attorney General of New York and is required by law to have her primary residence in the state of New York — even though her mortgage applications list her intent to have the Norfolk, VA property as her primary home,” Pulte wrote.
Pulte also alleges James bought a five-family property in Brooklyn in 2001 with a loan that is only available for homes with four units or less.
“Spanning the last two decades, Ms. James has consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications,” Pulte wrote. “It appears that Ms. James may have listed the Brooklyn, NY property as four units instead of five units in order to meet the conforming loan requirements, and thus receive better interest rates.”
“Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte concluded, adding that it could lead to charges such as wire fraud, mail fraud and bank fraud, along with making false statement to a financial institution.
James responds to allegations
“Attorney General James is focused every single day on protecting New Yorkers, especially as this Administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies — no matter who they are,” a spokesperson for the New York attorney general’s office said.
James went after Trump over fraud allegations
In 2022, James sued Donald Trump for years of alleged financial fraud, claiming Mr. Trump and his family participated in a conspiracy to inflate his net worth by billions of dollars in order to secure better loan rates, among other things. A judge found them liable and ultimately ruled Trump and the Trump Organization must pay $354 million in fines, though the actual total recently climbed to above $500 million due to interest while he appeals.
Jesse ZangerJesse Zanger is the managing editor of CBSNewYork.com. Jesse has previously worked for the Fox News Channel and Spectrum News NY1. He covers regional news around the Tri-State Area, with a particular focus on breaking news and extreme weather.
