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Big Development: Is Letitia James Guilty of Mortgage Fraud? 

For over two decades, Letitia James repeatedly claimed her Brooklyn apartment building was a four-unit property on mortgage applications—despite official records proving it had five.

This may seem a minor discrepancy, but misrepresenting the unit count enabled her to secure more favorable loans, including a 2011 Home Affordable Modification Program (HAMP) loan that saved her tens of thousands of dollars annually.

Now, the same legal principles she used to prosecute others may be turning against her.

It all began in 2001 when Letitia James purchased a four-story multi-family apartment building with five apartments in Brooklyn for $550,000.

In 2005, James refinanced the building with an adjustable loan from Aegis that started at an interest rate of 7.2% with a ceiling of 10.2%.

For the next two decades, James took out refinancing mortgages and always listed the number of units as four.

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