New York Attorney General Letitia James didn’t just misclassify her five-unit Brooklyn brownstone as a “4-family dwelling” on mortgage documents. As we’ve previously reported, this distinction is not trivial—properties with five or more units are considered commercial and subject to stricter lending rules. But our latest investigation reveals something even more troubling: on multiple occasions, James described the property as a “1-family,” “1–2 family,” or even “1–3 family” dwelling—designations that offer even greater mortgage advantages than the 4-family classification, including lower interest rates, reduced reserve requirements, and easier approval thresholds.

This isn’t a minor paperwork discrepancy. Five-unit buildings are classified as commercial properties under federal lending guidelines, subject to stricter underwriting standards, higher down payments, and less favorable terms. By repeatedly downgrading the unit count—sometimes to as low as a single-family home—James may have accessed residential mortgage products exclusively designed for primary residences with substantially more favorable terms.

The official Certificate of Occupancy for 296 Lafayette Avenue clearly and explicitly states “Five (5) Family Dwelling” in all capital letters. This official document, dated January 26, 2001, establishes the legal occupancy status of the building: View Certificate of Occupancy

Yet just two months after that Certificate of Occupancy was issued, James signed mortgage documents describing the property as a “One or Two Family” dwelling—the most aggressive misclassification possible, delivering the greatest mortgage advantages under residential lending programs.