November 19, 2025
James’s legal team introduced new documents in court citing internal communications from Fannie Mae officials.
Senior fraud investigators at Fannie Mae asserted there is no clear evidence to support claims of mortgage fraud by New York Attorney General Letitia James.
James’s legal team introduced new documents in court, citing internal communications from Fannie Mae officials. The filings allege that the team was repeatedly made aware that the evidence to support the claims lacked substance.
According to the filing, internal communications from June 2025 show concern from Fannie Mae’s Director of Mortgage Fraud, Sean Soward, and the vice president of financial crimes, Jennifer Horne.
Soward wrote that the case was “certainly not clear and convincing evidence” of fraud, Politico reported.
The filing also suggests that the Federal Housing Finance Agency (FHFA) appointee, Bill Pulte, was directed by Donald Trump to pursue the criminal investigation against James.
James’ lawyers argue that Pulte, in bringing the indictment, improperly exercised his authority.
“Director Pulte abused his position as FHFA Director to direct an investigation of AG James, outside of the normal processes and rules governing the agency, despite being told repeatedly that there was no evidence of wrongdoing,” the filing stated.
Furthermore, questions about how prosecutors obtained access to James’ nonpublic mortgage files remain unanswered. James’ attorneys say Pulte sent a private letter summarizing “exact calculations” to Special Assistant U.S. Attorney Lindsey Halligan shortly before she brought the indictment.
Halligan later presented the case to a Virginia grand jury after the previous U.S. attorney declined to move forward, citing insufficient evidence.
During a press conference, James responded to the claims, calling out the Trump administration for its “desperate attempt” to attack her. Additionally, James stated the case against her is an example of the “weaponization of our justice system.”
James, an elected Democrat, is accused of bank fraud and making a false statement to a financial institution. Prosecutors claim James’s Virginia residence was falsely represented as her primary residence to fraudulently obtain a home loan. Her lawyers argue the case represents government misconduct and are asking a federal judge to dismiss the charges.
As the judge weighs the request to dismiss the charges, many are seeking to gauge the extent to which political pressure may have played a role in the investigation. For now, James continues to deny wrongdoing and remains focused on clearing her name as the case progresses.
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