Letitia James’ Mortgage Mess: A Legal Storm Brewing for NY’s AG
NY AG’s Mortgage Fraud Twist: Chasing Trump While Facing Her Own Fall
New York Attorney General Letitia James, known for her high-profile fraud case against Donald Trump, now faces her own legal scrutiny over alleged mortgage fraud. Investigations reveal a pattern of discrepancies in her property dealings that could threaten her position and credibility.
In August 2023, James signed a specific power of attorney, declaring a Virginia property as her "principal residence" while authorizing a relative to act on her behalf. This move, reported by White Collar Fraud, raises questions about her eligibility to serve as AG under New York law, which requires residency in the state. If she established residency in Virginia, her office might be deemed vacant, potentially invalidating her actions, including the Trump case. Alternatively, if she didn’t move, the declaration could be seen as a misrepresentation to secure better mortgage terms—a federal crime carrying fines or imprisonment.
Further allegations deepen the controversy. For over two decades, James reportedly misrepresented her Brooklyn property as a four-unit building on mortgage applications, despite records showing five units. This allowed her to secure a 2011 HAMP loan at a 2.7% rate, saving her thousands annually. She also claimed financial hardship despite earning over $126,000 yearly, a claim that contradicts HAMP guidelines. Additionally, a 1983 loan with her father, Robert James, listed them as "husband and wife," sparking questions of fraud to qualify for better terms.
James’ financial disclosures also show inconsistencies. A Virginia property valued at $100,000-$150,000 reportedly carries up to $400,000 in mortgages, an implausible loan-to-value ratio. She listed it as an investment but reported no income in 2023, further fueling suspicion. Handwritten modifications on mortgage documents, uncovered by White Collar Fraud, suggest attempts to retroactively adjust property classifications, potentially to bypass federal lending rules.
The hypocrisy is stark. James, who prosecuted Trump for inflating asset values, now faces similar accusations. Legal experts warn that if proven, these allegations could lead to criminal charges or removal from office. The Federal Housing Finance Agency has reportedly sent a criminal referral to AG Pam Bondi, accusing James of falsifying records for the Virginia loan, according to posts on X.
As of April 15, 2025, James has not publicly addressed these claims. Her silence, amid mounting evidence, casts a shadow over her tenure. The AG, who once declared "no one is above the law," may soon find herself on the other side of it. Will she weather this storm, or will her own legal battles unravel her career? New Yorkers await answers.
