Allegations of mortgage fraud have cast a shadow over New York Attorney General Letitia James. The Federal Housing Finance Agency has referred her to the Department of Justice for allegedly falsifying real estate documents tied to properties in Norfolk, Virginia, and Brooklyn, New York. James dismisses these claims as baseless and politically driven.
The Daily Caller reported that since 2020, inconsistencies in James’ financial disclosures have raised eyebrows. A report from White Collar Fraud pointed to irregularities in loans reported for a Norfolk, Virginia, property. These discrepancies have fueled suspicions of misconduct.
In August 2023, James signed a Specific Power of Attorney for a Norfolk property, swearing it would be her primary residence.
This document, signed just before her high-profile trial against Donald Trump, allowed a relative to secure a mortgage on her behalf. Primary residences often qualify for better loan terms due to lower default risks.
The timing of James’ Norfolk document has drawn scrutiny. Signed during her tenure as New York’s Attorney General, it raises questions about her residency intentions. If she misrepresented her plans to live there, she could face real estate fraud charges.
On April 16, 2025, the Daily Caller News Foundation visited the Norfolk property and found it occupied by someone other than James. Neighbors, shown her photograph, did not recognize her. One neighbor noted the residents did not include the “lady from New York.”
If James did relocate to Norfolk as her primary residence, she might have violated New York’s residency requirements for her office. White Collar Fraud highlighted this potential conflict. The allegations suggest a pattern of questionable real estate practices.
James’ Brooklyn property has also come under fire. A 2001 Certificate of Occupancy lists it as a five-unit dwelling, but James allegedly reported it as a four-unit property as recently as 2020. Mischaracterizing the property could have secured more favorable loan terms.
White Collar Fraud flagged additional inconsistencies in James’ financial disclosures for a second Norfolk property. Loans and mortgages reported in some years vanished in others. Two loans—one from Freedom Mortgage and one from National Mortgage—lack independent public record verification, raising doubts about their existence.
James has vehemently denied the allegations. “The allegations are baseless,” she told Spectrum News NY1 on April 17, 2025. She framed the accusations as a politically motivated “revenge tour.”
During the same interview, James tied the allegations to her legal victory against Donald Trump. Her office secured a $454 million judgment against Trump for exaggerating asset values, with interest accruing during his appeal. She suggested the fraud claims are retaliation for her pursuit of justice.
“He went after law firms, universities, immigrants, women,” James said, referencing Trump’s actions. She argued the allegations are part of a broader pattern of disruption, including chaos in government and threats to Medicaid and Social Security. Her defiance was clear: “I will not be bullied.”
James further emphasized her resolve, stating, “I will not bend, I will not break.” She insisted that no one, including the president, is above the law. Her comments underscore her belief that the allegations are an attempt to undermine her authority.
The allegations against James carry significant implications. If proven true, they could erode public trust in her office, especially given her role in prosecuting high-profile cases. The Department of Justice’s investigation will likely determine the validity of the claims.
Critics, including Fox News’ Laura Ingraham, have seized on the story. Ingraham noted that James’s claim of the Norfolk property as her primary residence allowed her to secure a favorable mortgage rate. This, she argued, mirrors the kind of financial misrepresentation James has accused others of committing.