In a Monday night letter, William J. Pulter, director of the U.S. Federal Housing Agency (FHFA), referred New York Attorney General Letitia James to the Department of Justice for prosecution of mortgage fraud.In Other News
Now, it appears, James's chickens are coming home to roost.
"Pursuant to my authority as Director of the U.S. Federal Housing Finance Agency (“U.S.Federal Housing” or “FHFA”), I am referring the matter below," Pulter wrote. "As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities and the security and stability of the U.S. mortgage market."
Pulter said the agency has "identified matters that are appropriate for referral to the U.S. Department of Justice for consideration of criminal prosecution."
He added that, based on media reports, "Ms. Letitia James has, in multiple instances, falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms."
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