Trump administration refers NY AG Letitia James for possible prosecution over allegations of mortgage fraud

New York Attorney General Letitia James has been hit with shocking allegations by the Trump administration, accusing her of mortgage fraud.

In documents obtained by Fox News Channel's "The Ingraham Angle," the Federal Housing Finance Agency (FHFA) sent a criminal referral to the Department of Justice, accusing James of mortgage fraud Tuesday.

FHFA Director William Pulte said in a letter to Attorney General Pam Bondi that James appears to have falsified records to meet certain lending requirements and receive favorable loan terms.

Pulte cited a property in Virginia that James allegedly claimed as her principal residence and a property in New York she claimed as a four-unit structure instead of five, which he said could mean she was able to get a different and more favorable loan.