Letitia James Faces Fraud Allegation Over Home Loan

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Letitia James Faces Fraud Allegation Over Home Loan \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Trump administration officials are calling for a federal investigation into New York Attorney General Letitia James, alleging mortgage fraud tied to a 2023 home purchase in Virginia. James, who secured a $454M fraud judgment against Trump, says the accusations are retaliatory. A city probe into related real estate claims found no wrongdoing.

Quick Looks

Letitia James co-signed a 2023 mortgage to help her niece buy a Virginia home
A Trump-era housing official accuses her of fraudulently claiming it as her primary residence
James says she explicitly checked “no” on her loan form regarding residency
Federal officials have requested a DOJ investigation based on media reports and legal documents
James’ office calls the claims “baseless” and politically motivated retaliation
The AG helped her niece via a common joint credit arrangement between family members
Experts say the available documents don’t prove deception or wrongdoing
An anonymous complaint also challenged James’ Brooklyn townhouse occupancy status
Records show four legal units; older certificate listed five units pre-dating her ownership
City building inspectors found no violations after multiple visits
The controversy arises as Trump appeals the $454 million fraud judgment James won in 2023

Deep Look

New York Attorney General Letitia James, who last year secured a stunning $454 million civil fraud judgment against Donald Trump, is now the subject of political retaliation from Trump allies, according to her office. The latest accusation? That she misled a mortgage lender by listing a Virginia property—purchased in her niece’s name—as her own primary residence.

In a letter dated April 14, Federal Housing Finance Agency (FHFA) Director William Pulte, a Trump-era appointee, asked U.S. Attorney General Pam Bondi to open a criminal investigation into James. The allegation centers around a 2023 property transaction in Norfolk, Virginia, in which James co-signed a mortgage to help her niece, Shamice Thompson-Hairston, buy a home.

The Allegation: A Primary Residence Dispute

According to Pulte, a legal form filed during the home purchase declared the Virginia property as James’ “primary residence.” The document in question, a power of attorney form signed on August 17, 2023, allows James’ niece to represent her during closing. Pulte argues this form, which includes standard language about the signer’s intent to live at the property, contradicts James’ legal obligation to maintain primary residence in New York, where she serves as Attorney General.

Citing this document and media reports, Pulte hypothesizes that James falsely claimed residency in Virginia to qualify for a lower mortgage interest rate—a tactic that, if proven, could potentially be classified as bank fraud.

But James’ office has pushed back hard. Her team provided part of the loan application where she explicitly checked “no” in response to the question: “Will you occupy the property as your primary residence?” Further, James also noted on the form that she was applying for joint credit with her niece—who was planning to live in the home full time.

Such arrangements are commonplace when family members support a relative’s first home purchase, real estate attorneys say. Unless a pattern of deception or personal financial gain can be demonstrated, legal experts contend that these types of co-signing agreements are routine and generally non-criminal.

James Responds: “Baseless” and Politically Motivated

In an interview with NY1, James dismissed the accusations as politically fueled retaliation.

“It is nothing more than a headline, nothing more than retaliation against all the actions I have taken successfully against Donald Trump,” she said.

Her office released a statement calling the charges “cherry-picked” and “baseless,” and framed them as part of Trump’s broader campaign to weaponize federal institutions against those who have challenged him in court.

“Donald Trump’s weaponization of the federal government continues to careen out of control,” her team said.

Indeed, the letter from Pulte follows a wave of efforts by Trump-aligned officials and allies to discredit or punish legal figures who have taken action against the former president. In addition to James, other prosecutors—like Manhattan District Attorney Alvin Bragg and Special Counsel Jack Smith—have also faced political attacks and investigations launched by Republican lawmakers or officials.

Real Estate Experts Question the Allegations

Legal and real estate experts who reviewed the available documents say there’s little to suggest fraud, especially given the evidence that James checked “no” to living in the Virginia home and listed her niece as the primary resident.

“These forms are boilerplate, and unless you see the full application or evidence of deception, it’s hard to claim wrongdoing,” one Virginia-based real estate attorney told the Associated Press.

Additionally, a New York Law School housing law professor, Andrew Scherer, noted that the document‘s reference to “primary residence” in a power-of-attorney form was highly unusual, and such phrasing is not typically the legal basis for fraud charges.

Brooklyn Townhouse Scrutiny Yields No Violations

Pulte’s letter also raised an unrelated allegation, claiming that James misrepresented the number of units in a Brooklyn townhouse she has owned since 2001. He points to a certificate of occupancy from a previous owner, stating the building had five legal apartments. James has consistently listed the building as having four units in her mortgage documents and permit filings.

New York real estate lawyers note that these types of inconsistencies are not unusual—especially in older properties with evolving layouts and grandfathered floor plans.

“Going from five units to four units doesn’t really help her financially or legally,” said Scherer. “Unless there’s some financial benefit, it’s not a regulatory concern.”

Despite multiple anonymous complaints filed with the New York City Department of Buildings since July 2023—right before Trump’s civil fraud trial began—inspectors found no violations during recent visits, including a final inspection on Wednesday that closed the matter as “unsubstantiated.”

Politics Over Policy?

The controversy comes at a pivotal moment for both James and Trump. While James is defending her record in court and preparing for further high-profile cases, Trump is appealing the $454 million fraud judgment she won against him. The original case found that Trump inflated the value of his assets on financial statements provided to banks and insurers.

Trump has repeatedly denied any wrongdoing, framing the case—and James herself—as politically motivated.

As the battle continues in courtrooms and the media, this latest accusation from Pulte appears to fit into a broader pattern of political payback—but with little legal traction, at least so far.