Letitia James’s New York State mortgage records indicate that she committed mortgage fraud on a $200,000 “Credit Line Mortgage” with Citizens Bank in 2021.
Like other mortgages, it requires a signed note, a mortgage document, and recording with the county clerk.
The mortgage document shows that James misrepresented her five-unit apartment building as a single-family dwelling.
This false claim allowed James to avoid significantly higher commercial loan closing costs and a higher interest rate.
In New York, the number of units in a property determines whether a loan qualifies as a residential mortgage with lower interest rates (1 to 4 family dwellings) or whether it’s a commercial/multifamily building mortgage with higher interest rates and closing costs (5 or more dwelling units).
The official Certificate of Occupancy for Letitia James’s building at 296 Lafayette Avenue in Brooklyn describes it as a “FIVE (5) FAMILY DWELLING.”
That designation is the one and only controlling legal authority for unit count.
Yet for two decades after buying the property in 2001, James refinanced multiple times while claiming the building had only four units.
This misrepresentation allowed James to qualify for lower residential interest rates she was not entitled to receive.
Even on her most recent refinancing on August 23, 2019, the mortgage document lists four units.
On June 21, 2021, Letitia James signed the $200,000 Credit Line Mortgage with Citizens Bank for a 25-year term. On the first page of the agreement, under “PROPERTY DATA,” the Property Type is listed as “DWELLING ONLY—1 FAMILY.”