Fannie Mae and Freddie Mac's New York offices will be permanently closed in response to Attorney General Letitia James' "corrupt and dangerous business practices."
A source close to the Federal Housing Finance Agency (FHFA) told Fox News Digital, "We are shutting down the two New York offices for Fannie and Freddie as a result of Letitia James' corrupt and dangerous business practices in the state." A public announcement is expected to be made later on Thursday. The FHFA is an independent federal agency responsible for regulating Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System.
"We'll still employ New York residents, and we'll still continue to do mortgage loans in New York, of course," the source continued. "But we are going to eliminate our physical presence. And to the extent that we have leases, we are going to be subleasing those."
The expected closure of Fannie Mae and Freddie Mac's New York operations follows a Justice Department probe into Letitia James’ personal mortgages. The investigation began in May, after FHFA Director Bill Pulte referred the matter to prosecutors, alleging that James had falsified mortgage documents to secure more favorable loans.
A home James purchased in Norfolk, Virginia, in 2023 is at the center of the investigation, which is listed as her primary residence on mortgage documents as well as on a Fannie Mae/Freddie Mac form. As the attorney general of New York, she is legally required to live in the state she serves. The report includes a 2001 purchase of a Brooklyn, New York, property which lists it as a five-unit residence, while James' mortgage lists it as a four-unit residence.
James' attorney, Abbe Lowell, sent a letter to U.S. Attorney General Pam Bondi when the charges were filed back in April, arguing the referral was "three pages of stale, threadbare allegations with no reason to proceed other than they are ‘based on media reports’ and are the next salvo in President Trump’s revenge tour against Attorney General James."