NC South Carolina Times

Rep. Ralph Norman recently addressed a letter to Federal Housing Finance Agency (FHFA) Director William Pulte, commending the agency's decision to refer New York Attorney General Letitia James for criminal prosecution. The referral is linked to her alleged involvement in a mortgage fraud scheme.

The letter also presses the FHFA to propose legislative recommendations to Congress aimed at reducing fraud in the housing finance sector, increasing transparency, and rebuilding public trust.

The referral of Letitia James follows an extensive initiative to eliminate corruption and fraud in government-backed mortgage programs. Reports suggest that James may have claimed ineligible mortgage benefits by falsifying her state of residence across multiple loan applications. Director Pulte has pledged to cooperate with legislators to prevent such abuses and ensure the system benefits average citizens rather than political elites.

Rep. Norman's letter outlines several proposed actions, including stronger verification processes for government-backed loans, improved data sharing among agencies, stricter penalties for officials guilty of mortgage fraud, and the creation of a public mortgage fraud offender registry. It also calls for more robust roles for the FHFA Inspector General and enhanced systems to revoke fraudulently obtained loans.

The letter underscores the significance of mortgage fraud, particularly by officials responsible for enforcing laws. This misconduct not only skews underwriting practices but also increases housing costs and erodes taxpayer-funded programs' integrity. Rep. Norman emphasizes his support for FHFA's current efforts and encourages the agency to recommend legislative changes that can be incorporated into upcoming financial oversight and housing reform initiatives.

Rep. Norman stated, "Letitia James is accused of deliberately falsifying her primary residence on a sworn mortgage application to obtain a preferential loan rate, potentially violating federal and state mortgage fraud statutes. If true, this isn’t just fraud—it’s a betrayal of the public trust. I applaud Director Pulte and FHFA for taking decisive action."