Federal prosecutors are investigating New York Attorney General Letitia James for allegedly falsifying documents to obtain better mortgage rates. The FBI and U.S. Attorney's Office in Albany are examining claims from William Pulte, head of the Federal Housing Finance Agency. He alleges that James misrepresented her residency status and the number of units in properties to secure government-backed loans. James, who previously prosecuted Trump for fraud, denies these allegations, calling them politically motivated. The probe raises significant legal implications and highlights ongoing tensions between James and Trump’s allies amid his appeals against a $500 million civil fraud ruling.

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