News Summary
The Federal Housing Finance Agency (FHFA) has announced the permanent closure of its Fannie Mae and Freddie Mac offices in New York following an investigation tied to Attorney General Letitia James. This decision relates to allegations of mortgage fraud and unsafe business practices associated with James, prompting further scrutiny into her mortgage activities. Despite the closure of physical locations, the FHFA assures that mortgage services will continue for New York residents as the situation unfolds.
New York – The Federal Housing Finance Agency (FHFA) has announced plans to permanently close its offices for Fannie Mae and Freddie Mac in New York, a decision reportedly linked to an investigation involving Attorney General Letitia James. Sources indicate that this move is a response to allegations of “corrupt and dangerous business practices” associated with James. A public announcement detailing the closures is expected later today.
Despite shutting down its physical offices in New York, FHFA officials have assured that they will continue to employ residents in the state and maintain their provision of mortgage loans. The FHFA is responsible for overseeing government-sponsored enterprises including Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System.
The decision to close these offices follows the initiation of a grand jury investigation by the Department of Justice (DOJ) into James’ residential mortgage practices. This investigation is focused on alleged falsifications of mortgage records by James, particularly related to her purchase of a home in Norfolk, Virginia, in 2023. Investigators are scrutinizing her claim that the property is her primary residence, despite her obligations as a statewide elected official to live in New York.
In response to these allegations, FHFA director Bill Pulte has submitted a criminal referral to the DOJ, highlighting potential mortgage fraud by James. This referral points to inconsistencies in James’ past property purchases, including a 2001 Brooklyn home where occupancy records did not align with her mortgage claims.
Attorney General Letitia James has denied any wrongdoing associated with her mortgage practices and has described the ongoing investigation as an act of political revenge orchestrated by former President Donald Trump. Throughout her tenure, James has been a vocal opponent of Trump, having filed nearly 100 legal challenges against him during his presidency. She has publicly vowed to continue pursuing legal action against Trump if she remains in office.
The relationship between James and Trump has been strained, especially in light of the administration’s efforts to investigate her professional conduct. This includes the removal of U.S. Attorney Erik Siebert, who reportedly did not act on charges against James in relation to mortgage fraud.
In a separate context, Attorney General James has been involved in efforts to block federal funding restrictions aimed at protecting victims of sexual assault and domestic violence. A coalition of state attorneys general, including James, is challenging new Department of Justice rules concerning federal funding for legal services to these vulnerable populations. These new rules are set to take effect on October 31.
As the FHFA moves forward with the closure of its New York offices, it signifies a significant shift amid ongoing controversies surrounding Attorney General Letitia James and the investigations into her mortgage practices. While the agency assures the continuation of services within the state, the implications of these developments remain to be seen as the legal investigations progress.
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Additional Resources
- NBC News
- Wikipedia: Letitia James
- CNN
- Google Search: Letitia James
- ABC News
- Google Scholar: Letitia James investigation
- Democracy Docket
- Encyclopedia Britannica: Letitia James
- Politico
- Google News: Letitia James Trump
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