According to the Federal Housing Finance Agency (FHFA), James listed the property as her primary residence, despite being legally required to reside in New York as a statewide official.
Why it matters:
- Mortgage Terms Depend on Occupancy
- Primary residences receive lower interest rates because banks consider them less risky.
- Misrepresenting a home as a primary residence could be considered mortgage fraud.
- Expert Insight on Lending Standards
- “As a real estate attorney, we represent every major lending institution,” Debbas explained.
- “A common underwriting requirement is to confirm if a property is a primary residence, second home, or investment property.”
“Clearly there’s a higher rate of default with second homes and investment properties,” Debbas added.
Political and Legal Fallout
As the legal saga unfolds, many observers see the investigation into Letitia James as a direct consequence of the political and legal tactics she used against Trump.
“This serves the same purpose,” Debbas said. “It’s a political tit for tat.”
