New York Attorney General Letitia James has finally spoken out amid mounting accusations of mortgage fraud concerning her Brooklyn property. However, instead of confronting these serious allegations, she’s taking a defensive stance, targeting her critics, including former President Donald Trump, and calling her predicament part of a “right-wing revenge tour.”
On Tuesday night, the Trump Administration referred New York State Attorney General Letitia James to the Department of Justice over these serious mortgage fraud accusations. The Federal Housing Finance Agency (FHFA) has alleged that James falsified records, specifically citing a 5-unit property listed as only four units to secure a more favorable loan.
In a communication to Attorney General Pam Bondi, FHFA Director William Pulte indicated that James seems to have manipulated records to meet certain lending requirements, enabling her to receive preferable loan terms.
During an interview on Inside City Hall, James was grilled about the criminal referral that alleges she misrepresented her property’s occupancy classification—a move that could be deemed a felony offense for any other New Yorker.
Naturally, James dodged the direct questions, stating she won’t “litigate this case in a camera.” Instead, she turned her focus to her office’s $454 million judgment against Trump for alleged asset inflation—a case currently undergoing appeal.
Errol Louis: What is going on here? Did anybody contact you before this letter went out, accusing you of this, that, and the other, and making a criminal referral about real estate transactions?
Letitia James: No, not at all. Let me just say to all New Yorkers and to all Americans: the allegations are baseless. The allegations are nothing more than a revenge tour. As you mentioned, my office was successful in securing a $454 million judgment against Donald Trump and others for exaggerating the value of his assets. He engaged in a pattern and practice of fraud, and the interest is accruing each and every day while the case is on appeal in the First Department. It’s important that individuals know this is nothing more than the continuing evolution of the tour.
He went after law firms, universities, immigrants, women. Thousands of federal employees right now are unemployed. Our government is in chaos and in disarray. Medicaid, Social Security, CFPB—and the list goes on and on and on. As you mentioned, each and every day, my office is leading the fight against these executive orders, which have no legal import at all—have no legal significance.
We are standing up for the rights and privileges of New Yorkers and Americans. I will not be silenced. I will not be bullied. I will not bend. I will not break. And I will not bow to anyone.
No one is above the law, including the President of these United States. The Office of the Attorney General will continue to stand up.
Errol Louis: Let me follow up on some of what’s in this letter. It says, “According to media reports,” which, for us in the media, is a red flag—meaning that it seems to be based on some social media posts that I know were made by partisan political actors. But just let me ask you about some of the specifics in the letter. They’re saying that your house in Brooklyn is a legal five-family, and the mortgage on it is for a four-family house. Is that true?
Letitia James: Let me just say that, Errol, as any good attorney, I will not litigate this case in front of a camera. It’s important that we respond to these allegations at the appropriate time and in an appropriate way.
But I will not go back and forth with respect to these baseless allegations. I am more focused, again, on standing up for the freedoms, the liberties, and for the rule of law in the state of New York.
Errol Louis: I was under the impression, by all of this, that what they were really looking for is what they got—which is a headline saying, “Tish James is under criminal investigation.” Is that pretty much what’s going on here?
Letitia James: Yeah, that’s what they got. That’s what they got. It’s unfortunate that you have some of these right-wing, conservative individuals who are camped out in front of my home and in front of the homes of my relatives in Virginia, harassing them each and every day.
It’s unfortunate—knocking on the doors of my neighbors and the neighbors of my relatives in the state of Virginia. It is nothing more than a headline, nothing more than, again, retaliation against all of the actions that I have taken successfully against Donald Trump.
Earlier reports have detailed multiple instances of alleged mortgage fraud by James, focusing on her Brooklyn and Virginia properties. Over two decades, James is accused of misrepresenting her Brooklyn building’s unit count on mortgage applications, despite official records indicating it has five units.
This discrepancy allegedly allowed her to secure a 2011 HAMP loan at a low 2.7% interest rate, saving her an estimated $44,000 annually. Critics question her claimed financial hardship for the loan, noting her 2011 earnings were over $126,390 from various sources.
Further accusations involve a 2023 property acquisition in Virginia, where James allegedly declared a Norfolk home as her primary residence, despite legal obligations to reside in New York as Attorney General.
The FHFA has referred James to the Department of Justice, with claims she falsified records for a favorable $219,780 mortgage. Among these allegations is an unusual 1983 property purchase with her father, where documents listed them as “husband and wife,” potentially constituting mortgage fraud.
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