New York’s Fannie Mae and Freddie Mac offices will permanently close in response to what officials called Attorney General Letitia James’ “corrupt and dangerous business practices” in the state.
“We are shutting down the two New York offices for Fannie and Freddie as a result of Letitia James’ corrupt and dangerous business practices in the state,” a source close to the Federal Housing Finance Agency (FHFA), which oversees government-sponsored enterprises, told Fox News Digital.
“We’ll still employ New York residents, and we’ll still continue to do mortgage loans in New York, of course,” the source continued. “But we are going to eliminate our physical presence. And to the extent that we have leases, we are going to be subleasing those.”
The FHFA is an independent federal agency that regulates Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System.
James, a longtime President Trump adversary, campaigned for AG in 2018, vowing to charge him and expose the “con man.” Her office filed nearly 100 suits against his first administration and pledged after his 2024 win to keep challenging him in court to “defend New Yorkers and the rule of law.”
The planned closure of Fannie Mae and Freddie Mac offices in New York follows a DOJ investigation into mortgages by James. The probe stems from a criminal referral by FHFA Chief Bill Pulte in April, alleging that James falsified records to secure favorable loans. At issue is a Norfolk, Virginia, home she bought in 2023, which she listed on mortgage documents as her primary residence, despite being legally required to reside in New York as a statewide official. The referral also flagged earlier issues, including James’ 2001 Brooklyn property, where the occupancy certificate listed five units but her mortgages listed four, a discrepancy that could impact loan terms.
James has denied wrongdoing, with her office telling The New York Times that her 2023 Norfolk home loan application noted she wouldn’t live there full-time and her mortgage didn’t require it as a primary residence. Her attorney, Abbe Lowell, called the referral “stale, threadbare allegations” driven by Trump’s “revenge tour” against her.
NEW YORK EXODUS — Fannie Mae and Freddie Mac’s New York offices will permanently close in direct response to Attorney General Letitia James’ “corrupt and dangerous business practices” in the state.
Sources tell Fox News Digital they will still employ New York residents and… pic.twitter.com/O901mSThIq
— Fox News (@FoxNews) October 2, 2025
