New York Attorney General Letitia James is facing allegations of bank fraud related to a property transaction in Norfolk, Virginia, where she helped her niece purchase a house by becoming a co-borrower on the mortgage loan. A top housing official in the Trump administration has called for a criminal investigation into James, citing a document from the transaction that suggests she falsely listed the property as her principal residence to secure lower interest rates. James, known for winning a lawsuit against Donald Trump, has dismissed the allegations as baseless retaliation.

The official’s letter also raised questions about the number of apartments in a Brooklyn townhouse owned by James since 2001. While a certificate of occupancy indicated five units, other records and past reports suggest there are four units. The discrepancy prompted speculation that James misrepresented the property to qualify for favorable mortgages. Real estate experts noted that such discrepancies are common during property transitions and may not have significant legal implications unless they lead to improper advantages.

Despite anonymous complaints to the city’s Department of Buildings alleging property misclassification by James, inspections have found no violations. The ongoing scrutiny coincides with Trump’s legal battles, including an appeal against the judgment in James’ favor regarding the valuation of his assets. James’ office maintains that the Brooklyn townhouse has four units and that the certificate of occupancy predates her ownership. The situation highlights the intersection of politics, legal disputes, and real estate regulations in a complex and contentious landscape.