Overview

• A federal grand jury in Virginia charged New York attorney general Letitia James with bank fraud and making false statements tied to a 2020 Norfolk property designated as a second home.
• Prosecutors allege James rented the house and benefited from a lower rate and seller credit, with the indictment calculating roughly $19,000 in savings over the life of the loan.
• The case followed an FHFA criminal referral by Director Bill Pulte and moved forward after interim U.S. attorney Lindsey Halligan took it to a grand jury, following reported resistance from career prosecutors.
• Legal experts note Fannie Mae revised its second-home rider in 2019 in ways that could complicate the allegation and point out that occupancy-only mortgage cases are rare, with 38 federal mortgage-fraud sentences recorded in 2024.
• James denies wrongdoing and has retained Abbe Lowell, whose statement calls the prosecution retaliatory and politically driven by President Trump, while DOJ leadership has publicly defended the case.