Key points:
- Trump administration's housing chief requests new criminal investigation into Letitia James.
- Allegations focus on potential mortgage insurance fraud involving applications to Universal Property Insurance and Allstate.
- Previous mortgage fraud case against James in Virginia was dismissed due to unlawful appointment of the prosecutor.
The Trump administration's federal housing finance director, Bill Pulte, has requested prosecutors in Florida and Illinois to investigate New York Attorney General Letitia James for potential mortgage insurance fraud.
The allegations center on applications made to Universal Property Insurance, based in Florida, and Allstate in Illinois. This move follows a previous mortgage fraud case against James in Virginia, which was dismissed after a judge ruled that the prosecutor, Lindsey Halligan, was unlawfully appointed. ([theguardian.com](https://www.theguardian.com/us-news/2025/nov/24/james-comey-letitia-james-charges-case-dismissed?utm_source=openai))
Federal prosecutors are also examining James's financial transactions with her hairdresser, who faces criminal charges for bank fraud and identity theft in Louisiana.
James has been a prominent adversary of Donald Trump, with her office securing a $450 million civil judgment against him and his sons in 2024 for fraud. However, a five-judge panel later overturned the financial penalty. ([theguardian.com](https://www.theguardian.com/us-news/2025/sep/04/new-york-attorney-general-trump-fraud-fine?utm_source=openai))
These developments underscore the ongoing legal battles between the Trump administration and its political opponents, raising questions about the use of federal resources in pursuing such cases.