New York Attorney General Letitia James has been hit with a federal criminal referral by the Federal Housing Finance Agency (FHFA) over allegations of mortgage fraud. FHFA Director William Pulte subsequently issued a shoddy referral that failed to address questions about James’s unethical behavior. She allegedly listed a property in Virginia as her principal residence in 2023 when obtaining home mortgage loans. James has become a household name over her high-profile, ongoing investigation into the Trump Organization. Instead, as her first official inquiry, she formally launched this investigation in July 2019.
The groundbreaking investigation into Donald Trump’s business dealings may be one of the keys that James must play in her historic tenure as New York Attorney General. Upon initiating the probe, she declared, “Make no mistake: No one is above the law, not even the president.” This feeling has served as a rallying cry for her office, putting a high premium on the idea of holding accountable above all, even position and power.
James is under fire over a 2023 loan application in which she reportedly lied on her application to qualify for a mortgage. The example investigated by Pulte showed that Ms. James likely created fake records for both homes cited. This move was probably purely to fulfill niche lending obligations and obtain more favorable loan terms. He noted that her fabrications were likely to have continued with the recent acquisition of a home in Norfolk, Virginia. That means she sought to achieve lower interest rates and better repayment terms.
Letitia James, in 2001 bought a five family home in Brooklyn, and put it under her own name funded by a $218,780 mortgage. This loan allowed her to benefit from the federal Home Affordable Modification Program, potentially reducing her mortgage interest rate by up to 1%. Now, as the cooling perks attract accusations of corruption and misdeeds, these financial benedictions are very controversial.
On August 17, 2023, James executed a power of attorney giving Shamice Thompson-Hairston the authority to sign documents on his behalf for plaintiff’s purchase of the Virginia property. As she continued her role as New York state prosecutor, her actions have raised concerns regarding her integrity and adherence to the law.
William Pulte was understandably concerned about James’s frequent mortgage applications. Even though this occurred several years ago, it calls into question the validity of Ms. James’ representations on mortgage applications. These actions may lead to criminal prosecution. They can lead to penalties including wire fraud, mail fraud, bank fraud, and false statements to financial institutions.
Here’s what legal experts had to say about what is happening here. Jonathan Turley remarked on the irony of James’s own legal troubles given her aggressive stance against Trump. He derided her for prosecuting Trump for everything including for taking off a label on a mattress. This again calls into question her credibility considering her own alleged misdeeds.
Turley then claimed that applying the standards that James herself has advocated for would render James’ own case rather cut and dry. He said, “Remember if we use the Letitia James standard that she invented there’s hardly a doubt in James’s case.”
“Attorney General James is committed to fighting for New Yorkers each and every day. The Administration has to date deployed the federal government against the rule of law and the Constitution both as relates to immigration enforcement and civil rights — she cannot be intimidated by bullies — including administration bullies.
The political manipulation of the situation surrounding Letitia James raises alarming questions about ethics and accountability for public officials. As a dedicated public servant, she herself faces her own prospect of criminal prosecution. Today, she once again finds herself in the eye of a legal whirlwind that could fundamentally alter her political prospects and turn public sentiment against her.
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