Fannie Mae and Freddie Mac Shutter New York Offices Over Letitia James’ Corruption

In a devastating blow to New York's credibility as a place to do business, Fannie Mae and Freddie Mac will permanently close their offices in the state, citing what sources describe as "corrupt and dangerous business practices" by Attorney General Letitia James.

This major move by the Federal Housing Finance Agency (FHFA), the federal body overseeing both mortgage giants, signals a loss of confidence in New York’s legal climate. A source close to the decision 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.”

The offices will cease operations, leases will be sublet, and any physical footprint in New York will be eliminated. However, Fannie and Freddie will still operate loans within the state and continue employing New York residents remotely.

This decision doesn't exist in a vacuum. It follows a criminal referral to the Department of Justice regarding Letitia James herself. FHFA Chief Bill Pulte referred James in April for potential mortgage fraud, alleging that she falsified mortgage records to secure favorable loan terms on a Norfolk, Virginia, property.

James a radical left-wing activist who used her campaign for Attorney General as a platform to “get Trump” claimed the Virginia home would be her “primary residence.” The issue? As a statewide elected official in New York, she's legally required to reside in the state.

This isn’t her first real estate controversy either:

• In 2001, James purchased a Brooklyn property where documents list five units, yet her mortgages claimed four a discrepancy that could constitute fraud.

• She’s facing scrutiny for mortgage applications that may have been falsified or misleading, which could trigger further legal fallout.

Of course, James’ office is calling it a political stunt another “salvo in Trump’s revenge tour.” That narrative might fly if the DOJ investigation weren’t already underway and if the FHFA hadn’t taken the unprecedented step of pulling two massive federal institutions out of her state.

Letitia James has filed nearly 100 lawsuits against President Trump, weaponizing her office as a partisan attack dog rather than focusing on the real issues affecting New Yorkers like affordability, crime, and a collapsing housing market. Now, her corruption and obsession with personal vendettas are actively driving federal agencies out of the state.

This isn’t just a black eye for her office. It’s a warning to every serious institution in America: New York, under Letitia James, is no longer a trustworthy partner.

Fannie and Freddie leaving New York isn’t just administrative it’s symbolic. It shows that even long-established federal bodies have had enough of the political games and legal abuses by state actors like James, who seems more interested in scoring headlines than upholding the law.

New Yorkers deserve better. America deserves better.

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