AG Letitia James reaps what she sows after leveling ‘laughable’ case at Trump: expert

The Trump administration’s prison referral concentrating on New York Lawyer Basic Letitia James for reported mortgage fraud probably by no means would have unfolded if not for the Democrat’s years of concentrating on the president in court docket, a New York Metropolis actual property lawyer and professional informed Fox Information Digital. 

“To be perfectly frank, this is a retaliatory case brought by the president for what the attorney general did to him over the last several years,” New York Metropolis lawyer Pierre Debbas, companion and founding member of actual property legislation agency Romer Debbas, informed Fox Information Digital in a Zoom interview Thursday morning. “Both cases, quite honestly, are very weak cases.

“The lawyer basic’s case that was introduced in opposition to Donald Trump was truthfully a pure manipulation of the authorized system, and it was laughable,” he continued, referring to the civil fraud case she brought against Trump. “One thing that is by no means taken place within the historical past of New York that was remoted at one explicit particular person for a politically pushed function.

“Now, on the flip side, this serves the same purpose, right? This is the president’s way of seeking retaliation against the attorney general for something that, in reality, is, while it’s considered mortgage fraud, it’s not criminal,” he continued. “And it’s not something that would have been brought upon had the attorney general not pursued a similar case with low merit against the president a few years back.” 

TRUMP ADMINISTRATION REFERS NY AG LETITIA JAMES FOR POSSIBLE PROSECUTION OVER ALLEGATIONS OF MORTGAGE FRAUD

New York Lawyer Basic Letitia James speaks throughout a information convention Sept. 21, 2022, in New York.   (Brittainy Newman, File/The Related Press )

The Federal Housing Finance Company (FHFA), an impartial federal company that oversees Fannie Mae, Freddie Mac and the Federal Dwelling Mortgage Financial institution System, despatched a prison referral to the Division of Justice Monday arguing the lawyer basic appeared to have falsified mortgage data to acquire extra favorable loans. 

On the coronary heart of the case is a Norfolk, Virginia, residence James bought in 2023, which she recognized on mortgage paperwork and a Fannie Mae/Freddie Mac type as a property that might function her major residence, in response to the FHFA letter dated Monday. James is legally required to reside in New York as a statewide elected official within the Empire State, the letter provides. 

Figuring out a house as a major residence versus a secondary residence or trip residence comes with monetary incentives, Debbas defined, as a result of banks will provide decrease rates of interest to major residences, with owners much less prone to default on such loans in comparison with a second residence. 

“As a real estate attorney, we represent every major lending institution in the country,” he stated. “And a common underwriting requirement for banks is to solidify what the use of the property is going to be, meaning, is it a primary residence, second home or investment property.

“And the explanation banks do that’s that clearly there is a larger fee of default with regards to funding properties and second properties versus major residences.”

The Trump administration’s criminal referral targeting New York Attorney General Letitia James for reported mortgage fraud likely never would have unfolded if not for the Democrat’s years of targeting the president in court, a New York City real estate attorney and expert told Fox News Digital.  (Seth Wenig, Pool/The Associated Press)

“The reason is is individuals, you already know, do not need to go away their properties,” he said. “Now, a second residence funding property, chances are you’ll be a bit extra inclined to throw the keys to the financial institution.” 

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The bank then requires the borrower to sign an affidavit confirming that the home being acquired will be used as a primary residence, he explained. 

“Now, if that’s not the intent or that’s in actual fact inaccurate, and also you signal that settlement, you’re in actual fact committing mortgage fraud,” he said. “And the financial institution depends on that settlement in supplying you with the mortgage. Now, would they’ve given you a mortgage if it had been a second residence? Doubtlessly, however the distinction is the rate of interest could be considerably larger.” 

The bank’s recourse when discovering such mortgage fraud related to misidentifying a property as a primary residence to obtain more favorable loan terms is “merely to name the mortgage,” he stated. 

State Attorney General Letitia James is a longtime political foe of President Donald Trump who campaigned for the attorney general job in 2018 by vowing to aggressively pursue legal charges against Trump if elected.  (Lev Radin/Pacific Press/LightRocket via Getty Images)

“They’d name the mortgage, power you to pay it off by a sure date,” he said. “For those who’re unable to promote the property or take different liquidity that it’s important to repay the mortgage, they’ve the correct to pursue a foreclosures motion. They’d be legally granted this proper. It will be very tough to contest beneath these circumstances as a result of, technically talking, this can be a default and that is fraud.” 

The New York City real estate attorney added that this type of fraud is common. 

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“What extent is it fraud? To be fairly trustworthy with you, this can be a quite common factor that does happen in the actual property market,” he said. “I am not saying it is proper. I am not saying Letitia James … the total extent of the legislation should not be utilized to her. However it’s one thing that takes place. As a result of if the mortgage is present, the financial institution hasn’t actually suffered any detriment, but it surely’s nonetheless mortgage fraud. So that does not take away the fraud part to this.” 

Debbas argued this type of fraud does not rise to the level of criminal activity because the bank can call the loan, take back the property or force it to be liquidated.

“The lawyer basic’s case that was introduced in opposition to Donald Trump was truthfully a pure manipulation of the authorized system, and it was laughable,” New York City attorney Pierre Debbas said, referring to the civil fraud case she brought against Trump. (Michael M. Santiago/Getty Images)

James’ office told The New York Times that a separate loan application for the 2023 Norfolk, Virginia, home purchase reportedly indicated she would not live at the property full time, and that her mortgage agreement did not require her to occupy the property as her primary residence. 

James is a longtime political foe of Trump’s who campaigned for the attorney general job in 2018 by vowing to aggressively pursue legal charges against Trump if elected, adding she’d expose the “con man” after her win that year. 

Her office leveled nearly 100 legal challenges against the first Trump administration and added after his second presidential win in 2024 that she would continue challenging him in the courts to “defend the rights of New Yorkers and the rule of legislation.”

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Most notably, James pursued a civil fraud case against Trump and the Trump Organization for inflating the values of properties to obtain more favorable loans, insurance coverage and tax deductions, which resulted in a $454 million judgment in 2024. 

A spokesperson for James’ office told Fox Digital Thursday that “a number of occasions in the course of the lawyer basic’s trial in opposition to President Trump and the Trump Group for years of monetary fraud, President Trump’s attorneys repeatedly made the argument that the lawyer basic’s lawsuit was politically motivated.

“Every single time, the judge rejected that argument and even sanctioned the attorneys for making it,” the spokesperson added. “Attorney General James won her lawsuit, and the judgment against President Trump now exceeds half a billion dollars.” 

Fox Information contributor Jonathan Turley famous the irony of Trump’s prison referral over allegations of James fudging numbers to acquire extra favorable loans after pursing Trump for one thing related. 

“This is a person who prosecuted Trump for everything short of ripping a label off a mattress, and among the charges that were brought in New York, in not just the civil but the criminal case, was making false or misleading statements to financial institutions,” the authorized scholar stated on Fox Information’ “The Ingraham Angle” Tuesday. “As for James, if we apply the Letitia James standard that she created, there’d be little question here. This seems pretty straightforward.”

The administration is trying into the allegations put forth by the FHFA whereas underscoring that “no one is above the law,” White Home spokesman Harrison Fields stated on Newsmax Wednesday. 

“With the Democratic Party, they love to throw stones in glass homes when they realize that they’re committing the crimes that they’re actually trying to go against,” Fields stated. 

“So, this is now a criminal referral that the Department of Justice under Attorney General Pam Bondi will have to look at,” he added. “The allegations from the FHFA are very serious. We’re going to look at them, and no one is above the law. And Tish James, she’d like to say that about the president, but she should look in the mirror and realize that if you have skeletons in your closets about abusing the law and doing illegal things, maybe you shouldn’t be purveying around like some justice queen, because you’re not.” 

NY AG LETITIA JAMES RESPONDS TO ALLEGATIONS OF MORTGAGE FRAUD

The prison referral additionally cited previous reported points with James’ properties, together with a 2001 buy of a Brooklyn property. The certificates of occupancy lists the property as a five-unit residence, whereas James’ mortgages record the property as 4 items. 

Debbas defined that five-unit properties are recognized as business properties, which might require a business mortgage that has larger rates of interest than a residential mortgage. Nevertheless, the banks carry the burden of confirming whether or not a constructing is business or residential. 

“If the borrower has the ability to tell the bank or convince the bank that it’s actually four units, it’s to their financial benefit,” he stated. “Now, when you look at a certificate of occupancy, certificate of the occupancy is issued by the Department of Buildings, which tells you the legal use of the building.

Letitia James’ office leveled nearly 100 legal challenges against the first Trump administration and said after his second presidential win in 2024 she would continue challenging him in the courts to “defend the rights of New Yorkers and the rule of legislation.” (Gary Hershorn/Getty Images)

“This can be a five-family dwelling,” he said. “Now, that is unequivocally a business property. The burden was on the financial institution to substantiate this, but when the borrower did, in actual fact, have concrete information … an argument could be made that mortgage fraud did happen within the utility of this legislation.” 

James’ office told The New York Times a rider attached to the Brooklyn mortgage stated the building was four units, not five. 

Debbas added that before the 2008 market crash, there was a lot of “shadiness” in the world of mortgages. 

“As an elected official … there ought to be a heightened commonplace for honesty and obliging by your authorized necessities not falsifying paperwork or committing fraud,” Debbas said. 

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While reflecting specifically on the Virginia home alleged mortgage fraud, he added, “Now, how would this impression her seating as lawyer basic of the state of New York? On the finish of the day, that is going to be decided largely based mostly on what number of enemies she’s created. However from a purely mortgage standpoint, it’s definitely mortgage fraud, however, for my part, it doesn’t warrant any prison exercise.”

A spokesperson for James’ office said Wednesday morning she has been “centered each single day on defending New Yorkers, particularly as this administration weaponizes the federal authorities in opposition to the rule of legislation and the Structure. She won’t be intimidated by bullies — irrespective of who they’re,” Fox Digital beforehand reported.