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| If arrogance had a face |
It looks like New York Attorney General Letitia James is finding out that actions have consequences. Fox News Digital dropped an exclusive bombshell Thursday, revealing that Fannie Mae and Freddie Mac are permanently shuttering their New York state offices, and they're pointing the finger squarely at James' "corrupt and dangerous business practices."
A source close to the Federal Housing Finance Agency (FHFA), the folks who keep an eye on government-sponsored enterprises like Fannie and Freddie, said: "We are shutting down the two New York offices for Fannie and Freddie as a result of Letitia James' corrupt and dangerous business practices in the state." It doesn't get much clearer than that.
A source close to the Federal Housing Finance Agency (FHFA), the folks who keep an eye on government-sponsored enterprises like Fannie and Freddie, said: "We are shutting down the two New York offices for Fannie and Freddie as a result of Letitia James' corrupt and dangerous business practices in the state." It doesn't get much clearer than that.
Expect a public announcement on the closures later today, per Fox.
But don’t worry, New Yorkers, Fannie and Freddie aren’t abandoning you entirely. "We’ll still employ New York residents, and we'll still continue to do mortgage loans in New York, of course," the source added. "But we are going to eliminate our physical presence. And to the extent that we have leases, we are going to be subleasing those." So, they're keeping the lights on for business, but they're done with New York's brick-and-mortar scene.
This move comes hot on the heels of a Department of Justice investigation into James' personal mortgage records, which kicked off earlier this year after FHFA chief Bill Pulte sent a criminal referral to the DOJ in April. The allegations claim that James might have fudged some paperwork to score better loan terms. At the center of the probe is a Norfolk, Virginia, home James bought in 2023, which she listed as her primary residence on mortgage documents and a Fannie Mae/Freddie Mac form. Problem is, as New York's AG, she's legally required to live in the Empire State.
But that's not all. The referral also flagged a Brooklyn property James bought back in 2001. The certificate of occupancy says it's a five-unit residence, but James' mortgage docs claim it’s a four-unit property. That kind of discrepancy could, shall we say, complicate mortgage agreements, because somewhere along the line, she's lying.
James, of course, is denying any wrongdoing.
But don’t worry, New Yorkers, Fannie and Freddie aren’t abandoning you entirely. "We’ll still employ New York residents, and we'll still continue to do mortgage loans in New York, of course," the source added. "But we are going to eliminate our physical presence. And to the extent that we have leases, we are going to be subleasing those." So, they're keeping the lights on for business, but they're done with New York's brick-and-mortar scene.
This move comes hot on the heels of a Department of Justice investigation into James' personal mortgage records, which kicked off earlier this year after FHFA chief Bill Pulte sent a criminal referral to the DOJ in April. The allegations claim that James might have fudged some paperwork to score better loan terms. At the center of the probe is a Norfolk, Virginia, home James bought in 2023, which she listed as her primary residence on mortgage documents and a Fannie Mae/Freddie Mac form. Problem is, as New York's AG, she's legally required to live in the Empire State.
But that's not all. The referral also flagged a Brooklyn property James bought back in 2001. The certificate of occupancy says it's a five-unit residence, but James' mortgage docs claim it’s a four-unit property. That kind of discrepancy could, shall we say, complicate mortgage agreements, because somewhere along the line, she's lying.
James, of course, is denying any wrongdoing.
Her office told the New York Times in April that a separate loan application for the Virginia home made it clear she wouldn't be living there full-time, and her mortgage agreement didn’t require it to be her primary residence. Her attorney, Abbe Lowell, went on the offensive, firing off a letter to U.S. Attorney General Pam Bondi calling the referral "three pages of stale, threadbare allegations with no reason to proceed other than they are ‘based on media reports’ and are the next salvo in President Trump’s revenge tour against Attorney General James." A "revenge tour"? That's some spicy rhetoric.
Speaking of the President, James has made no secret of her disdain for the 47th president. She campaigned for AG in 2018 by promising to go after him with the full force of the law, vowing to expose the "con man" after her victory. Her office racked up nearly 100 legal challenges against Trump's first administration, and after his 2024 win, she doubled down, pledging to keep hauling him into court to "defend the rights of New Yorkers and the rule of law."
So, here we are. Fannie and Freddie are packing up their New York offices, the DOJ is sniffing around James' mortgage deals, and the political feud between James and Trump is as fiery as ever. Something tells me this story has more twists to come.
Speaking of the President, James has made no secret of her disdain for the 47th president. She campaigned for AG in 2018 by promising to go after him with the full force of the law, vowing to expose the "con man" after her victory. Her office racked up nearly 100 legal challenges against Trump's first administration, and after his 2024 win, she doubled down, pledging to keep hauling him into court to "defend the rights of New Yorkers and the rule of law."
So, here we are. Fannie and Freddie are packing up their New York offices, the DOJ is sniffing around James' mortgage deals, and the political feud between James and Trump is as fiery as ever. Something tells me this story has more twists to come.
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