Those of you who have subscribed to my Substack for the last month or so know that my approach now is to focus my Round Ups on one things at a time, for my own mental health and, hopefully, yours. This week I’ll give you a short primer on the latest indictment brought by Trump’s lackeys in the Justice Department, this time against New York Attorney General Letitia James. You can read the indictment here, it’s pretty short (I guess one good thing about the practically baseless charges this Justice Department is bringing these days is they don’t have a lot to put in their filings so they are pretty quick reads).
The indictment is based on a Virginia property that James purchased in 2020 for use, according to mortgage documents, as a second home. (This is a different Virginia property than the one she bought in 2023 and which was teased as a possible basis for charges.) Instead, prosecutors allege, James used it as a “rental investment property” in violation of a rider on the mortgage, which is backed by Fannie Mae, that prohibited James from using the property as a “timesharing or other shared ownership agreement that requires her to either rent the property or give any other person control over the occupancy or use of the property.” The indictment indicates that James’ tax returns indicate rental income in violation of the rider, and alleges that her misrepresentations allowed her to obtain a rate .815% lower than an “investment property” mortgage, saving her close to $19,000 in interest over the life of the loan.
So if all that is true, it sounds like it could be a colorable violation of the law, i.e, bank fraud and false statements. Except that this very helpful Wall Street Journal article explains that in 2019, Fannie Mae clarified its second home riders on its mortgages to make clear that owners could rent out a second home. The clarification came about because many people were confused about whether they could rent out second homes through AirBnB — lenders interpreted the language as prohibiting it, even though, according to Fannie Mae, it was always allowed. The article states:
The new rider now clearly states that some renting is permitted. It says, ‘Borrower will maintain exclusive control over the occupancy of the Property, including short-term rentals.’ Turning a property over to a management company, rental pool or timeshare arrangement that calls the shots isn’t allowed—a condition that was also clearly stated in the previous version of the rider. Even more significantly, the new version of the rider also puts a time limit on rental restrictions, saying that ‘Borrower will keep the Property available primarily as a residence for Borrower’s personal use and enjoyment for at least one year’ unless other terms are negotiated and permitted in writing by the lender. After one year, the rider no longer precludes any kind of renting—including by a management company—and no permission needs to be sought, said the Fannie Mae spokesman.
Even the “one-year restriction” on rentals makes an exception for “short-term rentals,” and the WSJ article notes that Fannie Mae clarified its language and intent specifically to make clear to lenders that an owner who rented the property themselves — for example through sites like AirBnB — did not need to obtain an “investment mortgage.”
It’s not clear from the indictment when James reported rental income and for how much (although this Lawfare analysis notes that James’ financial disclosures to New York only indicate that she received $1,000-$5,000 in rental income in 2020. That would fall within the one-year restriction, but it seems like if it was a short-term rental and James had leased it directly to whoever rented it, this would be allowed.
So, I’m confused. It’s possible that Lindsay Halligan, who, like the case against former FBI Director James Comey, brought the indictment on her own, is confused, too — she apparently didn’t even inform Attorney General Pam Bondi or main justice that she was bringing the case, as federal prosecutors normally would. Then again, Halligan perhaps knows more about insurance law, her speciality, than I do, so perhaps I am missing something. (The fact that she couldn’t find anyone else in the department to bring these charges suggests to me that I’m not.)
This week, Renato and I analyzed the thru-lines in the various National Guard deployments (or attempts at deployments) across the country, some of which have just had opinions handed down as I write which I will dissect later. We also discussed the legal endgame in Trump’s military strikes on drug boats (on which I will have a longer piece coming out next week):
ANNOUNCEMENT — I’m writing a book!!!
I’m so excited to announce that I am writing a book on the mechanics of complicity and how to resist it, which will be out in 2028! I know, I know, you want and need this book now. Please stay tuned — I will be wrapping up the Substack course by the end of this year (it will still be available in The Freedom Academy archives for all paid subscribers). After that, I’ll be exploring some of the questions, ideas, and people I am researching for the book in my posts, so you’ll get a taste of what’s to come along the way!
Join me and Renato in Alaska!
It’s Complicated is cruisin’! Come join me and Renato as we explore the stunning beauty of Alaska and discuss how we can work together to protect our democracy! It’s a small ship, and there will be lots of opportunities to talk to us both, plus we will have an opening and closing reception and dedicated democracy discussion tables throughout the cruise. You can find out more at this link, and fill out your info here to have an agent call you with more information. Stay tuned for our next happy hour/info session!
Upcoming events:
Zoom Office Hours, Thursday, October 23, 5 p.m. EDT. We will discuss the latest. I hope to bring in another special guest, so stay tuned! Zoom link will be sent to paid subscribers three hours before the event. Office hours are not recorded.
The Freedom Academy Book Club with David S. Abraham, author of Elements of Power: Gadgets, Guns, and the Struggle for a Sustainable Future in the Rare Metals Age, Tuesday, October 28, 8 p.m. (sorry for the late timing but David is in Jakarta!) If you’re trying to follow the debate about critical and rare earth minerals (or want to know the difference between the two), you won’t want to miss this talk! Zoom link will be sent to paid subscribers three hours before event. The talk will be recorded and posted for paid subscribers.
Class Guest Speaker Professor John Witt, author of the forthcoming The Radical Fund: How a Band of Visionaries and a Million Dollars Upended America, Wednesday, November 5, 7 p.m. EST. Our current moment has many parallels to the Gilded Age. The Progressive Era, which followed, generated many grassroots movements and jumpstarted our democracy towards what Scholar Robert Putnam calls an “upswing.” Professor Witt’s book is about one of those movements, which may hold lessons for us today. Please join! Zoom link will be sent to paid subscribers three hours before event. The talk will be recorded and posted for those who cannot make it live.
NEW! Time/Date TBA (likely late November/early December). Class Guest Speaker
, author of the Pepperspectives Substack, on Local Affairs and the Habits of Democracy. So excited to have my friend, law school classmate, and colleague David — who has been a previous guest speaker for my Substack class on the role of state politics in facilitating autocracy — come and talk to us about how we can effect change at the local level. Zoom link will be sent to paid subscribers three hours before event. The talk will be recorded and post for those who cannot make it live.
WHAT CAN YOU DO?
I am getting a lot of questions from friends and colleagues asking what they can do in this urgent political moment. I have three potential actions steps you can take now:
Pro bono lawyers are on the front lines to stop Trump’s breakdown, takedown, and shakedown of the federal government. You can contribute to this effort on the donation page of State Democracy Defenders Action
Go be in community with others — in person — who share your concern about and commitment to our democracy. I am currently at my alma mater, Princeton, for an alumni conference, and so many of the panel discussions have turned to what is happening right now in the U.S., both in higher education and everywhere. Not only was it reassuring and inspiring to hear Princeton’s president, Christopher Eisgruber, speak forcefully about the need for moral courage in this moment, but seeing people around me nodding, asking questions about what they can do, and generally remarking (over and over again) that we are not in a normal moment is validating and helps remind you that no, you are not crazy and no, you are not alone. (Protest can do this also, so make sure to get out for the No Kings marches on October 18 — but I did love the chance to be able to sit and reflect and listen in this kind of setting.)
Self care tip of the week: Check out the fall leaves! (Or depending where you are in the world, the changing of whatever season it is now.) It wasn’t until I moved up tot he northeast that I really realized how beautiful fall colors can be — the air is also different and it’s great to be out for walks in the cooler air. (And if the seasons don’t change where you are, enjoy the beach/pool and a mojito for me!)
‘Rise like Lions after slumber
In unvanquishable number—
Shake your chains to earth like dew
Which in sleep had fallen on you—
Ye are many—they are few.’
— The Masque of Anarchy by Percy Bysshe Shelley, stanza XXXVIII
Elements of Power becoming even more relevant in the context of Trump's threat to raise tariffs on China by an additional 100%. I would imagine that this action will result in additional export controls on China's rare metals.
Very exciting news about the book, Asha. Something to look forward to as I attempt to survive the present, one day at a time. Now I’ll watch you and Renato as I drink my decaf.