Fannie Mae States There Is No Evidence NY AG Committed Fraud. This Is The Latest Twist In The Letitia James Morgage Fraud Case
Senior Fannie Mae fraud investigators say the New York Attortey General did not commit mortgage fraud. They also stated there is also no clear evidence to prove that the New York AG committed mortgage fraud. This information is the latest blow to the Trump administration in the Letitia James mortgage fraud case.Â
As a result, James’ attorneys filed a motion asking a federal judge to dismiss the criminal charges against James. They claim the government’s outrageous conduct as grounds for a dismissal.Â
New York Attorney General Letitia James
The statements by Fannie Mae officials reveal new details about how people inside Fannie Mae viewed the investigation into James. Fannie Fae officials were not happy with the role that FHFA Director Bill Pulte played in shaping the probe.
In June, Fannie Mae’s Director of Mortgage Fraud Sean Soward expressed concern about the case. He said it lacked “certainly not clear and convincing evidence” of fraud.
The DOJ at Trump’s insistance NY AG James of bank fraud and making a false statement to a financial institution. She is one of several of Trump’s political foes facing bogus criminal charges.
Federal Housing Finance Agency Bill Pulte opened the investigation at the behest of Trump. Pulte then sent the DOJ a criminal referral. Attorney General Pam Bondi assigned pardon attorney and weaponization czar Ed Martin to help with the probe.Â
Trump later installed his former personal lawyer Lindsey Halligan to serve as U.S. Attorney for the Eastern District of Virginia. She was ordered to bring the indictment after her predecessor refused to do so. All of predecessors cited a lack of evidence.
Did Bill Pulte Abuse His Position?
FHFA Director Bill Pulte
James’ attorneys raised questions about how Pulte gained access to their client’s non-public mortgage files. They noted that Pulte also sent Halligan a private letter on October 6, 2025. This letter provided a summary of the information and financial calculations on the property at the heart of the indictment. The letter also included information from Fannie Mae’s financial crimes investigative team.
Not long afterward, Halligan went before a different grand jury in Alexandria to present evidence. James’ lawyers say the two-count indictment bore the exact calculations Pulte had sent to Halligan.
Reuters alsoreportedthat the White House ousted the FHFA Acting Inspector General Joe Allen. Allen tried to provide prosecutors in the James case with crucial, constitutionally required discovery.
The filing also raises concerns with Martin’s conduct. Attorneys cite to his decision to pose for photos outside of her Brooklyn home. In addition they cite a letter he sent her demanding she resign as New York’s attorney general.
