Good day all. As you may recall, the corrupt New York Attorney General Letitia James brought a lawsuit against President Trump for some sort of fraud. The problem was, there were no victims of this alleged fraud and all parties in the business deal were very happy.
This didn’t matter to either James or the crooked judge she had the case brought to. They decided that there was fraud, primarily over the value of Mar-a-lago, which President Trump had used as collateral in a deal. The short version is that the judge, Auther Engoron, decided that Mar-a-lago was only worth something like $16 million dollars and not the $3-400 million dollar valuation made by President Trump and the bank he was working with. The comments on the idiocy of that judge’s ruling were many, all calling him a fool.
Now there is a story starting to float around that the Attorney General, Letitia James, might have actually done what she accused President Trump of doing. Here are the details from the Gateway Pundit:
For over two decades, Letitia James repeatedly claimed her Brooklyn apartment building was a four-unit property on mortgage applications—despite official records proving it had five.
This may seem a minor discrepancy, but misrepresenting the unit count enabled her to secure more favorable loans, including a 2011 Home Affordable Modification Program (HAMP) loan that saved her tens of thousands of dollars annually.
This is basically what her office accused President Trump’s company of doing. The difference here? It looks like she actually did it.
It all began in 2001 when Letitia James purchased a four-story multi-family apartment building with five apartments in Brooklyn for $550,000.
Is that all? Considering the prices in New York, that is surprisingly cheap.
In 2005, James refinanced the building with an adjustable loan from Aegis that started at an interest rate of 7.2% with a ceiling of 10.2%.
An ARM? When I bought the Anger Central Primary Dwelling way back when, the loan broker set it up as an Adjustable Rate Mortgage claiming that it was a lower interest rate than a fixed mortgage. This was accurate as far as it went, but didn’t take into account the word “Adjustable.” While it can go down, it can and does go up. Now for commercial loans, which tend to be short term, this would make sense. Still, 7.2% seems a bit high, even for an ARM at that time.
For the next two decades, James took out refinancing mortgages and always listed the number of units as four.
So she was not providing accurate information to the loan companies? Gee, isn’t that what she accused President Trump of doing? I’m also curious about the loan companies as well. Didn’t they do a walk through before approving the loans? The Gateway Pundit story also includes a screen shot of the official document James filed. It’s shows 4 apartments.
However, the official record in the most recent Certificate of Occupancy, dated January 26, 2001, says the property is legally classified as a five-family dwelling. In the world of mortgage lending, this is a critical distinction.
And the reason for this distinction is very straightforward.
Properties with four or fewer units qualify for more favorable “residential” interest rates, while those with five or more are classified as “commercial” properties—often subject to higher rates.
I’m beginning to see how James managed to get away with this. I suspect that anyone looking at the building saw four stories and assumed one apartment per floor. I’m wondering if there was one floor with two smaller apartments or if there was a basement apartment that couldn’t be seen from outside.
Fast-forward to 2011. With her 2005 adjustable-rate mortgage likely escalating toward 10.2%, James sought relief from HAMP – a federal initiative under the Troubled Asset Relief Program (TARP) designed to assist homeowners at risk of foreclosure.
And that is why I have never and will never get an ARM.
HAMP, however, had strict eligibility requirements. According to its official Making Home Affordable Program Handbook, “Eligibility is limited to owner-occupied properties with no more than four units.”
I wonder if she was living in the building or just using it as an investment property? This is important under the HAMP guidelines.
The reasoning was clear: the program aimed to assist regular homeowners and not landlords of multi-family rental apartment businesses.
I know someone who owns several buildings he uses as rental properties. He does live in one, but the others are filled with tenants. He wouldn’t be eligible for this program. (He’s also very careful on how he finances things too) In James’s case, she claimed the building as having four apartments, not five.
Now if she was living there, she may have thought that her apartment didn’t count. As someone with a legal background, I can say that if she thought this, she’s utterly incompetent. The Certificate of Occupancy, which lists five apartments made her ineligible for these programs.
Additionally, James submitted a financial hardship statement in her application, declaring: “I am experiencing a financial hardship, and as a result, (i) I am in default under the Loan Documents, and (ii) I do not have sufficient income or access to sufficient liquid assets to make the monthly mortgage payments now or in the future.”
Yet, public records indicate that in 2011 Letitia James earned at least $126,390. Of that total, $122,500 was from her position on the City Council of New York City, and another $3,890 from her work at CUNY.
Does that include her rental incomes? I have a suspicion that she didn’t bother to include that income and I know the reason why.
The HAMP guidelines explicitly state that applicants must provide “a verified financial hardship that prevents them from making their mortgage payments.”
James was making good money with no real expenses. She was single, no kids and I suspect the rents on that building at the minimum, covered all the expense. James was able to get the HAMP loan. It dropped her interest rate to about 2.7% which saved her $44K or more a year. I’m wondering if someone actually went out and looked at that building? Somehow, I doubt it. If they had, they would have known that something was not right.
HAMP regulations required borrowers to certify the accuracy of their application, warning: “False statements may be punishable by fines, imprisonment, or both under federal law.”
Mortgage fraud is defined under federal law as knowingly making false statements to obtain a loan under false pretenses. It carries serious penalties, including fines and imprisonment.
HAMP abuses fall under the jurisdiction of the U.S. Department of the Treasury, it has the power to enforce compliance and investigate potential misuse.
I wonder if the new Secretary of the Treasury is aware of this possible fraud? If not, then we should make sure he is made aware and that he is quietly looking into it. (You don’t want a huge public spectacle. It’s possible that this is all just a simple misunderstanding after all)
In February 2024, James led a high-profile fraud case against Donald Trump, securing a judgment that found Trump guilty of inflating asset values to secure better loan terms.
We’re still waiting for the appellate court’s decision on the case. When they heard it, they tore the Attorney General’s representatives a new one. The blowback from that crooked judge’s decision on the value of President Trump’s properties has caused a number of businesses to start relocating and canceling projects.
Given the clear discrepancies in James’ HAMP application, regarding both her financial hardship and the number of apartment units, this case warrants immediate review by federal enforcement agencies.
The question remains: Will the same legal standards James enforced on others be applied to her own real estate financing history? After all, as James has assured us, “No one is above the law.”
I have no idea, but if that corrupt cow did break the law, then she needs to be indicted, arrested, perp walked, tried, and if the evidence supports it, convicted and locked up in a federal prison. President Trump’s Secretary of the Treasury, Scott Bessent, should be made aware of these allegations. I would recommend reaching out to his office and politely “Drop a Dime” on Letitia James.
Thatisall
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