The tables have turned!
The Trump Administration criminally referred New York Attorney General Letitia James to the Justice Department over accusations of mortgage fraud.
The Federal Housing Finance Agency (FHFA) accused Letitia James of falsifying records, citing a 5-unit property in New York she claimed was only four units in order to get a more favorable loan.
TGP recently reported on this 5-unit property in Brooklyn that Letitia James purchased in 2001.
For more than 20 years, Letitia James repeatedly claimed her Brooklyn apartment building was a four-unit property on mortgage applications—despite official records proving it had five.
This is not a minor discrepancy. Lying to the bank about the unit count enabled Letitia James to secure more favorable loans, including a 2011 Home Affordable Modification Program (HAMP) loan that saved her tens of thousands of dollars annually.
Letitia James was able to secure a conforming loan through Fannie Mae/Freddie Mac since they are only available on properties up to 4 units.
