Fannie Mae and Freddie Mac will shut down their New York offices due to Letitia James.

New York Offices to Close Amid Allegations Against Attorney General

New York’s offices are set to close permanently due to concerns over state Attorney General Letitia James’ “corrupt and dangerous business practices.” A source familiar with the situation at the Federal Housing Finance Agency (FHFA), which supervises government-backed entities, shared that the closures of two New York offices for Fannie Mae and Freddie Mac are a direct consequence of these allegations against James.

Public announcements regarding this closure are expected later today. The source emphasized that while New York residents will still be employed, the physical office spaces are being eliminated. They mentioned, “As long as we have leases, we’re potentially on the line for those,” which suggests a careful approach to managing their real estate commitments.

Justice Department Investigates James

In a separate but related matter, the Department of Justice has launched an extensive investigation into Letitia James, coinciding with her ongoing legal tussles with former President Donald Trump. James has a history as a vocal critic of Trump, having pledged to challenge him legally since her election. In fact, her office has filed nearly 100 legal cases against his administration, signaling a longstanding antagonism.

As Trump vies for election again, James has vowed to maintain pressure on him legally to uphold the rights of New Yorkers and adhere to the rule of law.

Controversy Surrounding Mortgage Transactions

The anticipated office closures have prompted serious scrutiny, leading to a criminal referral after claims surfaced that James may have misrepresented her mortgage to secure a better loan. The investigation centers on a property in Norfolk, Virginia, purchased by James in 2023, where allegations suggest discrepancies in the mortgage documentation versus her stated primary residence.

As a statewide elected official, James is legally obliged to reside in New York, which complicates matters further. The referral to the DOJ references previous complications related to her property holdings, including inconsistencies in occupancy status that could influence her mortgage agreements. In particular, there’s concern about her Brooklyn property where descriptions have conflicted with legal documents.

James has firmly denied any wrongdoing. Her lawyer, Abbe Lowell, asserted that accusations against her lack merit, framing them as part of a broader political attack initiated by Trump.