Letitia James accused of mortgage fraud, the Sun Belt loses its charm, and a tribute to a lodging sector leader. From the wild and wooly world of real estate, here are our Hits and Misses for the week of April 14-18
Miss: Not Practicing What She Preaches. New York Attorney General Letitia James liked to boast that “no one is above the law” when she prosecuted Donald Trump and the Trump Organization over alleged real estate valuation fraud, but it seems that she has some explaining to do regarding fraudulent information on her mortgage applications for a Virginia property. Federal Housing Finance Agency Director William Pulte sent a criminal referral to the Department of Justice claiming James “falsified records” to obtain loans on a Virginia property that she listed as her “principal residence” in August 2023. This occurred weeks before she litigated a civil fraud trial that resulted in a $454 million judgment against Trump and the Trump Organization. Pulte’s referral also pointed out that James’ mortgage application on a five-family Brooklyn dwelling in 2001 “consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications,” and he provided documents showing James purchased another property with her father as a co-signer that falsely listed the buyers as “husband and wife” in 1983 and 2000. James, who usually loves to speak to the media about her Trump-bashing efforts, has been avoiding the cameras and microphones since the story broke.
Miss: Here We Go Again. President Trump went on social media this week to call for the end of Jerome Powell’s leadership at the Federal Reserve for failing to cut interest rates in a speedy manner. “Powell’s termination cannot come fast enough!” said Trump, who was reportedly in discussions with aides during the past few months over whether he could fire Powell – the Wall Street Journal reports Trump discussed the matter Kevin Warsh, a former Federal Reserve governor who the president would like to see as Powell’s replacement. But Warsh argued against firing Powell and said Powell should be allowed to complete his term. Still, Trump declared yesterday, “If I want him out, he’ll be out of there real fast, believe me.” Please, must we put up with another round of this silliness? Powell has clearly stated he is not quitting and claimed the law prevents Trump from firing him. Maybe it is time for Trump to stop playing games over the final months of Powell’s term – the president knows firing him could create more chaos in the financial markets and perhaps a constitutional crisis if Powell refuses to acknowledge a termination notice.
Miss: Clouds Over the Sun Belt. The Sun Belt states, particularly Florida and Texas, recorded significant declines with inbound migration in 2024, according to a new data report from Redfin. The lower numbers of people moving to these markets was attributed to a rising cost of living – especially in metros including Tampa, Dallas and Austin that were once considered affordable but are now on the pricey side. Plus, higher insurance rates due to an increased ferocity in natural disasters makes the Sun Belt an increasingly expensive place to live. Competition from more affordable localities in the Midwest and Northeast has also heated up. Does anyone have good ideas on how the Sun Belt markets can make themselves more attractive?
Miss: Due Diligence Dereliction. Ontario Premier Doug Ford asked his government to look take a second look at a contract granted on a 95-year lease to the Austrian wellness company Therme for the development and operation of a spa and water park off Toronto’s waterfront. This new review is not based on any due diligence concerns from Toronto’s municipal government or the provincial Ontario government, but instead it was rooted in a New York Times investigation that found Therme significantly misrepresented itself during the bidding process on this project. The fact that an American newspaper had to raise a red flag on this contract is a poor statement on how the Toronto and Ontario governments handled the matter. Even worse, Ford refused to consider canceling the contract despite the fraud in the Therme application, stating, “This is going to be something spectacular at the end of the day. It’ll be the No. 1 one tourist attraction, I say in the country, next to Niagara Falls.”
Hit: Giving it Another Try. You’ve got to admire the persistence of Rep. Vern Buchanan (R-FL), who reintroduced two pieces of legislation designed address concerns in the housing market. Buchanan teamed with Rep. Jimmy Panetta (D-CA) on the Middle Class Mortgage Insurance Premium Act that would restore and permanently extend the mortgage insurance tax deduction and expand the deduction to more taxpayers by increasing the income limit from $100,000 to $200,000 per family. Buchanan also put forth the Fair Accounting for Condominiums Act to exempt high-rise condominiums from the percentage of completion method of accounting, which currently creates burdensome federal income tax issues for condominium developers. The congressman previously introduced the Middle Class Mortgage Insurance Premium Act in the 118th Congress and the Fair Accounting for Condominium Construction Act in both the 117th and 118th Congress. Maybe this time he’ll be able to overcome the partisan bickering in Congress and see his bills become law.
In Memoriam: Elaine Wynn. On Monday, we said goodbye to Elaine Wynn, who co-founded Wynn Resorts with her former husband Steve Wynn. The couple ran her father’s bingo parlors on the East Coast before moving to Las Vegas in 1967 and buying a small stake in a hotel and casino that grew into one of the most successful companies in its sector. The Wynns’ marriage had its ups and downs – the couple divorced in 1986, remarried in 1991 and divorced again in 2010 – and Mrs. Wynn was a hands-on corporate leader that built a lodging empire. The company paid tribute to her by declaring, “She helped to create and grow the company to become the most esteemed luxury resort brand in the world. Her many talents and special touches are indelibly imprinted on the company and still evident throughout our resorts.” She was also a prominent philanthropist who gave great financial and professional support for nonprofits focused on education and the arts was peerless. Elaine Wynn was 82.
Phil Hall is editor of Weekly Real Estate News. He can be reached at [email protected].
Photo: GearStd / Getty Images
this Jerome Powell should not be in charge of anythng,, he is keeping the rich richer, and the middle class poorer by not lower the interest rate, the cost of property now is out of this world, most any decent size house is over 1/2 million and Powell should be lower the interest as the houses price get higher, that is how our Country keeps fair and the lower income people can afford a house, instead of paying high rent and not owning anything.. someone needs to tell Powell he needs to go.. and fast. we are hurting, and that slows down everything else.. the builders, plumbers, electricians, brick layers, floor and windows people, this is not the way to keep our Country up and running..
Then Trump needs to end his tariff madness; he’s taken this too far; but, then again, he is the most unqualified person to run our great country….the adults need to take over.