FHFA Director Bill Pulte Criminally Refers NY AG Letitia James for Suspected Homeowners Insurance Fraud

WASHINGTON – Federal Housing Finance Agency Director Bill Pulte has issued two new criminal referrals against New York Attorney General Letitia James, alleging she committed homeowners insurance fraud on applications for a property she owns in Norfolk, Virginia.

The referrals, sent Wednesday, March 25, 2026, to the U.S. Attorney for the Southern District of Florida and the U.S. Attorney for the Northern District of Illinois, ask federal prosecutors to investigate whether James falsified occupancy information on insurance forms submitted to two carriers. One referral involves Illinois-based Allstate Insurance Company; the other involves Fort Lauderdale-based Universal Property Insurance. Both allege James may have defrauded the companies by claiming her Norfolk house was unoccupied for five months out of the year when, in fact, her niece has lived there full-time.

Pulte, a Trump administration appointee who oversees Fannie Mae, Freddie Mac and the Federal Home Loan Banks, reviewed insurance documents first publicized on social media by conservative activist Mike Davis, founder of the Article III Project. The letters direct the U.S. Attorneys to “authenticate and investigate” the information and determine whether criminal charges are warranted.

This marks the second time Pulte has referred James for potential criminal prosecution related to her Norfolk real estate holdings. In 2025, Pulte sent an earlier criminal referral alleging mortgage fraud tied to the same Virginia property, known in court filings as the “Perrone Property.” James was initially charged with bank fraud under 18 U.S.C. § 1344 and making false statements to a financial institution under 18 U.S.C. § 1014. However, a federal grand jury in Virginia declined to indict her on those allegations in December 2025 — the second time prosecutors failed to secure an indictment after an earlier case was dismissed by a Clinton-appointed judge.

James’ office has previously described the prior mortgage fraud investigation as politically motivated and has called the latest referrals part of an “improper revenge campaign.” No charges have been filed in either matter.

The insurance fraud allegations center on standard homeowners policy questions about property occupancy. Federal investigators previously obtained the applications through then-U.S. Attorney Lindsey Halligan, who first brought the potential fraud to light last year. Pulte’s office confirmed the DOJ has received the new referrals but declined further comment on ongoing matters.

The referrals come as James continues to serve as New York’s top law enforcement officer while facing multiple federal probes. In January 2026, prosecutors in the Northern District of New York and Western District of Louisiana opened a separate criminal investigation into James’ financial transactions with her longtime hairdresser, Iyesata Marsh. That probe remains active.

Pulte has made clear his agency will continue scrutinizing potential fraud in the housing finance system, including among public officials. The FHFA regulates the entities that back trillions of dollars in U.S. mortgages, giving Pulte authority to refer suspected violations that could affect the broader mortgage and insurance markets.