Mortgage fraud inquiry prompts increasingly loud demands for NY Attorney General James to step down, citing good faith reasons.

The Director of the Federal Housing Finance Agency (FHFA), Bill Pulte, has sent a written referral to Attorney General Pam Bondi requesting an investigation into New York Attorney General Letitia James. The referral, made in April, alleges fraudulent bank and property records by James.

The events are part of a month-long drama involving a retribution campaign by Trump against James and others who have battled him in court and fought his policies.

The investigation by Ed Martin, director of the Justice Department's Weaponization Working Group, stems from a letter sent by Pulte to Bondi in April. Pulte cited media reports claiming James had falsely listed a Virginia home as her principal residence, potentially to avoid higher interest rates that often apply to second homes.

James has sued the Republican president and his administration dozens of times. Last year, she won a $454 million judgment against Trump and his companies in a lawsuit alleging he lied about the value of his assets. An appeals court has yet to rule on Trump's bid to overturn that verdict.

In response to the investigation by James into alleged mortgage fraud, Martin called for James' resignation. He suggested that her resignation would be an act of good faith to address the issues in the referral.

Abbe Lowell, James' lawyer, responded to Martin's call and deemed it as being outside the bounds of DOJ and ethics rules. Lowell included an image from security camera footage in his response, suggesting that Martin's visit to James' home resembled a visit to a tourist attraction.

Images taken by the New York Post showed Martin standing outside of James' Brooklyn home with a colleague last week. The investigation by Martin concerns allegations of civil fraud related to James' property records.

However, Lowell described Martin's actions as a "truly bizarre, made-for-media stunt." The letter from Pulte to Bondi was the initial trigger for Martin's investigation into James. The outcome of the investigation and the call for James' resignation remains to be seen.