New York Attorney General Letitia James is charged with lying to lenders to get a favorable loan rate on a second home, but her mortgage contract permits renting. The key language in the contract allows renting under certain conditions.
The indictment alleges that James rented out the house without hiring a management company or third party to oversee it, but the contract doesn’t prohibit short-term rentals. Fannie Mae and Freddie Mac guidance supports this interpretation, stating that renting is allowed on a short-term basis.
James’ defense team plans to argue that no contracts or laws were violated, even if she rented out her place. The case may hinge on how the terms “occupy,” “available,” and “short-term rentals” are interpreted.
The indictment also makes no mention of whether James paid rent or for how long her grandniece, who lives in the house, received compensation. This lack of clarity raises questions about whether James knowingly lied to lenders.
Source: https://www.politico.com/news/2025/10/29/letitia-james-mortgage-contract-indictment-00625010