Fannie Mae Freddie Mac Closing New York Offices Over AG Letitia James Allegations

The Federal Housing Finance Agency (FHFA) is closing the New York offices of Fannie Mae and Freddie Mac due to what it calls Attorney General Letitia James's "corrupt and dangerous business practices." This decision follows a Justice Department investigation into James's alleged mortgage fraud, including accusations that she falsified documents for more favorable mortgage terms on properties in New York and Virginia, despite her legal requirement to reside in New York. While the physical offices will close, FHFA stated it will continue mortgage operations and employment in New York remotely. The closure comes amid ongoing political tensions, as President Donald Trump has criticized James and pushed for investigations against her following her successful lawsuit against him. James's attorney has dismissed the allegations as baseless and politically motivated. The controversy has also led to internal government conflicts, including the resignation of a U.S. attorney who resisted prosecuting the case due to insufficient evidence.