The FHFA “Mortgage Fraud” Complaint Against New York AG Letitia James is Bogus and Lacks Merit
- Donald V. Watkins
- Apr 17
- 4 min read
Updated: Apr 18
By: Donald V. Watkins
Copyrighted and Published on April 17, 2025
An Editorial Opinion
On April 14, 2025, Federal Housing Finance Agency (FHFA) director William Pulte, a Donald Trump appointee, wrote a criminal referral letter relating to New York Attorney General Letitia James to U.S. Attorney General Pam Bondi and Deputy AG Todd Blanche. In his letter, Pulte alleges that James "falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms."
Pulte alleges that "mortgage fraud" occurred with respect to: (a) a property in Virginia that James said in a sworn August 17, 2023, Power of Attorney,“I intend to occupy this property as my principal residence,” and (b) a multilevel brownstone apartment building in New York that James described as a four-family dwelling structure instead of a five family dwelling property. Pulte alleges that James' four-family dwellings decription may have helped her get a different and more favorable loan.
Both allegations of "mortgage fraud" are bogus and completely lack merit within the criminal context. What they evidence, however, is the willingness of Donald Trump administration officials to carry out his August 4, 2023, pledge of retribution against prosecutors who pursued civil and criminal charges against him.
Letitia James is one of the prosecutors who successfully pursued a civil business fraud case against Donald Trump, and she won it.
The Virginia Property
William Pulte’s letter claims that the declaration Letitia James made in a Specific Power of Attorney about her intention to occupy the Virginia property as her "primary residence" was false. Pulte is completely wrong on this point.
At the time of the Virginia property acquisition, the "primary residence" for Letitia James was the apartment unit in her brownstone building in New York City. This residence allowed James to qualify for and serve as the state’s Attorney General. Her second/current term ends in January 2027.
James was eight months into her second term in office when she signed the declaration of her intent to occupy the Virginia property as a "primary residence" whenever she leaves the AG position. Presently, New York does not have term limits for its AG.
Notably absent from Letitia James’ sworn declaration is any reference to when she intends to occupy the Virginia property as her "primary residence." The lender did not require any specificity on the occupancy date, and neither did the FHFA. James is free to make the Virginia property her “primary residence” whenever she chooses to do so.
As such, there is no "mortgage fraud" with respect to this transaction.
The New York Brownstone Apartment Building
Letitia James lives in a multilevel New York brownstone apartment building. This apartment building has a basement, three main floors, and cellar/boiler room.
The previous owner obtained the 2001 Occupancy Permit depicted below for this property. The Permit designated four units as family residencies – the basement and each floor above it. The Permit also allowed the owner to use the cellar/boiler room as a “Family Dwelling,” if he/she chose to do so.
When Letitia James assumed ownership of the property, she elected to become an owner/occupant in the building. She designated one of the four "Family Dwellings" as her primary residence.
The basement and three main floors were listed as “Dwellings Only-4 Families” on her tax payment. James did not designate the “cellar/boiler room” as a “Family Dwelling,” which was her perrogative.
In 2011, James paid the $940.50 in city taxes that were due for “Dwellings Only-4 Families.” In 2019, she paid $2,050 in city taxes on the property for “Dwellings Only-4 Families.”
William Pulte does NOT allege or claim that five families occupied five "Family Dwellings" in James' brownstone apartment building at any time during her ownership of the property.
As such, there is no "mortgage fraud" with respect to this transaction.
Pulte’s Distant Evidence of “Mortgage Fraud”
In his letter, Pulte referenced an old mortgage that Letitia James’ father, Robert James, executed in New York on May 20, 1983. The mortgage listed Letitia as Robert's “wife.”
This transaction occurred 42 years ago. It is far outside of any conceivable statute of limitations for a criminal case. Likewise, it has no probative value on the two mortgage fraud transactions referenced in Pulte's April 14th complaint.
Furthermore, the mortgage and mortgage discharge documents relating to this property transaction were prepared by the lender, not Letitia James. Any Scribner’s errors in those documents are attributed to the preparer, not James.
Final Thoughts
William Pulte's "mortgage fraud" complaint against Letitia James is completely bogus. It lacks merit in all material respects. It is a political smear manuever.
From 2022 to 2024, the Joe Biden’s Department of Justice used the same sleazy tactic to investigate, charge, try, and convict Baltimore City State’s Attorney Marilyn Mosby in similar federal criminal proceeding. Every federal official who touched Mosby's case failed her.
The "mortgage fraud" allegations against Letitia James are much weaker than the ones alleged in Mosby’s case, and Mosby's case was manufactured out of nothing at all.
Joe Biden did not use his pardon power to correct the manifest injustice that Mosby suffered in her case. Biden was too busy pardoning his son Hunter Biden for the crimes he was convicted of committing, as well as the crimes he pled guilty to committing.
Trump has used his time in office to pardon 1,600 January 6th rioters, including the ones who violently attacked and seriously injured Capitol police officers.
Trump's MAGA crowd wants Letitia James charged, prosecuted, convicted, and imprisoned solely because she prosecuted a civil business fraud case against Trump, and won it. They want an “eye for an eye” system of "grudge justice," whether the evidence supports criminal charges against the targeted individuals, or not.
A quick search turned up a recent state supreme courts ruling on this question
The Supreme Court of Pennsylvania reviewed the case. The court noted that the Pennsylvania Constitution requires judges to reside in their respective districts for at least one year before election. The court emphasized that residency for constitutional eligibility is determined by domicile, which involves physical presence and intent to remain. The court found that Section 704 of the Election Code, which applies to voter registration, should not be used as a bright-line rule for determining a candidate's eligibility to run for office.
does listing a new out of state primary residence show intent to remain or leave?
The latest charge of mortgage fraud alleged against Letitia James is a classic example of fabrication and basis for arguing in retaliation to a successful civil lawsuit brought in New York's District Court. I can't see how anyone could believe a single word, especially from someone who's widely known for circumventing the truth.