In the summer of 2023, New York Attorney General Letitia James supported her niece’s home purchase in Norfolk, Virginia, by becoming a co-borrower on the mortgage loan. A housing official from the Trump administration has seized on a document related to this transaction, urging the U.S. Justice Department to open a criminal investigation into James, on allegations of bank fraud. This request aligns with the administration’s broader campaign against President Donald Trump’s legal adversaries.
James had secured a substantial judgment of $454 million against Trump in a lawsuit, claiming he misrepresented the value of his assets on financial statements provided to banks. James has dismissed the accusations against her as unfounded, considering them retaliatory actions due to her legal successes against Trump.
In a correspondence dated April 14, directed at Attorney General Pam Bondi, U.S. Federal Housing Finance Agency Director William Pulte referenced “media reports” suggesting that James falsely declared the Virginia home as her principal residence to dodge higher interest rates generally associated with secondary home mortgages. He cited a legal form signed by James on August 17, which authorized her niece, Shamice Thompson-Hairston, to sign documents for her concerning the home sale. This form included a statement expressing an intention to occupy the property as a principal residence.
Pulte argued that given James’ position as the Attorney General of New York, she is legally required to maintain her primary residence within the state. However, James’ office shared part of a loan application in which she clarified her non-intention to reside in Virginia, marking “no” to the question of whether she would occupy the property as her primary residence.
James’ office contended that the federal government, under Trump’s administration, is manipulating information to attack the Attorney General. On her loan application, James also noted she was applying for joint credit with Thompson-Hairston, who intended to reside in the home, a common arrangement when parents assist their children in purchasing a starter home.
Legal experts have noted the difficulty in determining any wrongdoing based on the limited public documents. One Virginia lawyer remarked on the unusual inclusion of a primary residence reference in a power-of-attorney form.
William Pulte also accused James of misrepresenting the number of apartments in a Brooklyn townhouse she owns since 2001. While a certificate of occupancy from a previous owner authorized up to five living units, James and multiple city records indicate the townhouse has four. Pulte speculated these discrepancies aimed to secure federally backed mortgages with favorable interest rates.
Experts indicated that discrepancies in unit numbers are not uncommon in property transactions and typically attract regulatory scrutiny only if they confer improper advantages. According to Andrew Scherer, a housing law professor, reducing unit numbers provides no apparent benefit to James, suggesting the matter is unlikely to have legal consequences.
James’ office maintains that the building comprises four units and that the five-unit certificate predates her ownership. Anonymous complaints began emerging in July 2023, accusing James of misclassifying the property illegally. However, city inspections found no violations, with an inspection report dismissing complaints as unsubstantiated.
Meanwhile, Trump’s lawyers are appealing the judgment James won against him, with Trump asserting he did not mislead about his properties’ values.