Press Releases

Washington, D.C. – On Thursday, Rep. Ralph Norman (SC-05) wrote a letter to the Federal Housing Finance Agency (FHFA) Director William Pulte, applauding the agency’s referral of New York Attorney General Letitia James for criminal prosecution related to her alleged involvement in mortgage fraud.

The letter also urges that the FHFA provide legislative recommendations to Congress on how to better combat fraud in the housing finance system, strengthen transparency, and restore public trust.

Background

FHFA referred Attorney General Letitia James for criminal prosecution following a broader initiative to root out corruption and fraud in government-backed mortgage lending. Reports indicate that Attorney General James may have repeatedly misrepresented her state of residence to fraudulently qualify for mortgage benefits reserved for owner-occupants under federally backed loan programs. Evidence suggests a pattern of misrepresentation that spans multiple states and applications. Director Pulte has vowed to work with lawmakers to prevent further abuses and ensure the housing system works for honest Americans, not political elites.

Rep. Norman's letter called for a comprehensive FHFA-led review of the proposed actions:

• Stronger identity and occupancy verification for government-backed loans;
• Real-time data sharing between FHFA, HUD, federal law enforcement, and state attorneys general;
• Stricter penalties and automatic disqualification from public office for government officials found guilty of mortgage fraud;
• Strengthening the role of the FHFA Inspector General;
• Creation of a public mortgage fraud offender registry; and,
• Improved systems to recall fraudulently obtained loans.

The letter highlights the serious consequences of mortgage fraud, particularly when committed by elected officials entrusted with enforcing the law. Misconduct of this nature not only distorts underwriting practices and drives up housing costs but also undermines the integrity of taxpayer-funded programs. Rep. Norman reinforces his support for FHFA’s ongoing efforts and urges the agency to recommend legislative reforms that can be incorporated into upcoming financial oversight and housing reform packages.

Statement

“Letitia James is accused of deliberately falsifying her primary residence on a sworn mortgage application to obtain a preferential loan rate, potentially violating federal and state mortgage fraud statutes,” said Rep. Norman in a statement on Friday. “If true, this isn’t just fraud—it’s a betrayal of the public trust. I applaud Director Pulte and FHFA for taking decisive action.”