Overview

• Fox News Digital, citing an anonymous source close to the FHFA, reports the GSEs plan to shut their New York offices in what the source framed as a response to Attorney General Letitia James’ “corrupt and dangerous business practices.”
• According to the report, the companies would keep employing New York residents and continue doing mortgage business in the state while eliminating a physical presence and subleasing existing space.
• A public announcement was said to be expected later Thursday, and the reporting relies on a single unnamed source without independent confirmation from the agencies.
• The development follows a DOJ probe opened in May after FHFA Director Bill Pulte referred allegations that James falsified mortgage records, including listing a 2023 Norfolk, Virginia, home as a primary residence despite her legal requirement to live in New York.
• The referral also cites a 2001 Brooklyn property with a unit-count discrepancy, while James and her attorney, Abbe Lowell, deny wrongdoing and argue the referral is baseless.