Fresh referrals revive a political fight with real implications for insurers and lenders
Federal Housing Finance Agency (FHFA) director Bill Pulte has issued new criminal referrals targeting New York attorney general Letitia James over alleged homeowners insurance fraud.
The move reopened a politically charged dispute with direct implications for how mortgage and homeowners insurance cases are pursued.
According to letters described by multiple outlets, Pulte sent referrals to the Department of Justice and to US attorneys in the Northern District of Illinois and Southern District of Florida.
One referral alleged James “may have defrauded” Illinois‑based Allstate in connection with a Norfolk, Virginia property.
Another alleged she “may have falsified information on her homeowners insurance application” to Fort Lauderdale‑based Universal Property Insurance.
In one referral, Pulte said that based on social media posts from Trump ally and attorney Mike Davis, James “may have made false representations that her property would be unoccupied five months out of the year” and that “the house was, in fact, occupied year‑round by her niece.”
A Justice Department spokesperson confirmed only that “referrals were received by our U.S. Attorney Offices,” adding no detail on whether prosecutors would seek grand jury indictments.
James’s attorney Abbe Lowell framed the new referrals as a continuation of a larger campaign.
“The Trump administration [is] abusing their power to pursue a vendetta against her by trying to rename, refile, and repeat baseless allegations,” Lowell said.
“These desperate tactics will fail — just as every previous attempt has failed — and exposed an administration that has abandoned its responsibility to the American people in favor of petty political payback,” he said.
James was indicted in October 2025 on one count of making false statements to a financial institution and one count of bank fraud. She pleaded guilty, but the case was later dismissed after a judge ruled that Trump’s interim US attorney Lindsey Halligan had been improperly appointed.
Earlier this year, James’s lawyers argued that the earlier mortgage‑fraud prosecution reflected “outrageous government conduct” and “a justice system which has been weaponized,” and cited internal emails from Fannie Mae fraud specialists describing the evidence as falling short of “clear and convincing.”
For lenders, servicers and insurers, the fight underscores how routine occupancy and insurance representations on real‑estate forms could be pulled into partisan crossfire.
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