FHFA to Close Fannie Mae and Freddie Mac Offices in New York Amid Allegations Against Attorney General Letitia James
New York state's Fannie Mae and Freddie Mac offices are set to permanently close due to Attorney General Letitia James' alleged "corrupt and dangerous business practices." The Federal Housing Finance Agency (FHFA) is taking this action in response to James' conduct in the state. An official announcement about the closures is expected soon. Despite the closures, the FHFA will still employ New York residents and continue to offer mortgage loans in the state, but without a physical presence. The FHFA will sublease any existing office spaces in New York.
The FHFA, an independent federal agency, oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System. Letitia James has been a vocal critic of former President Donald Trump and has actively pursued legal action against his administration. Her office has filed numerous legal challenges against Trump and vowed to continue doing so to uphold the rule of law and defend New Yorkers' rights. The decision to close Fannie and Freddie's offices in New York follows a Department of Justice investigation into James' personal mortgages, including allegations of falsifying records to secure favorable loans.
The investigation centers on a property James purchased in Norfolk, Virginia, in 2023, which she identified as her primary residence on mortgage documents. However, as a statewide elected official in New York, James is required to reside in the state. The criminal referral to the Department of Justice also raised concerns about discrepancies in property listings and mortgage agreements related to James' past real estate transactions. James has denied any wrongdoing and refuted the allegations against her, stating that her mortgage agreements did not mandate her full-time occupancy of the properties in question.
James' attorney, Abbe Lowell, has criticized the criminal referral as being based on outdated and unsubstantiated claims, attributing it to a purported "revenge tour" by former President Trump against the attorney general. Despite these developments, James' office has not yet responded to inquiries about the impending closures of Fannie and Freddie's offices in New York. The situation underscores the ongoing legal and political challenges faced by Letitia James and the implications for the operations of government-sponsored enterprises in the state.