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The US is now collecting tariffs on imported timber, lumber, kitchen cabinets, bathroom vanities and upholstered furniture, duties that threaten to raise the cost of renovations and deter new home purchases. The import taxes — initially set at 25% for cabinets, vanities and upholstered wooden furniture — officially took effect on Tuesday at 12:01 a.m. New York time. Imports of softwood timber and lumber, meanwhile, are newly subject to 10% fees. At President Donald Trump's direction, most of the lumber and furniture tariffs are set to snap even higher in the new year under US  — with upholstered wooden products subject to a 30% rate and kitchen cabinets and vanities at 50% as of Jan. 1. READ MORE: Lumber prices swing as tariff fears roil marketsThe tariffs are the latest implemented by Trump, who continues to roil world markets by erecting trade barriers aimed at driving manufacturing back to the US. The strategy spans broad country-based levies as well as charges imposed on specific goods such as metals and autos. On Friday, Trump threatened to slap an additional 100% tariff on Chinese goods starting Nov. 1 in retaliation to Beijing's clampdown on exports of rare earth materials used in mobile phones, electric vehicles and other technology. The crux of Trump's tariff regime — tariffs on goods from specific economies — remains in legal jeopardy after federal courts ruled he overstepped the emergency powers used to impose them. The Supreme Court is expected to hear arguments in the administration's appeal next month. Sector-specific levies, like those on wooden furnishings, rest on stronger ground. They come under a separate authority — Section 232 of the Trade Expansion Act — that allows the president to apply tariffs in the name of national security.  Trump described his wood and furniture tariffs as helping to "strengthen supply chains, bolster industrial resilience, create high-quality jobs and increase domestic capacity utilization for wood products."READ MORE: NAHB's top economist weighs tariffs, immigration, economicsYet economists and homebuilders have warned they also could create obstacles to another of Trump's goals: boosting homebuilding and sales. Trump has for months cajoled Federal Reserve Chair Jerome Powell to lower rates in part to boost home affordability, but critics say the new tariffs could more than offset any gains from lower mortgage and lending costs. Roughly 7% of all goods used in new residential construction come from foreign suppliers, according to the National Association of Home Builders, which cited 2024 data. Even without new import taxes, the group has said the cost of building materials has risen by 34% since Dec. 2020. The new wood and furniture tariffs are uniquely designed — with provisions allowing the US Commerce Department to periodically consider adding new lumber and timber products to the list of goods hit with the levies. Trump also ordered administration officials to vigilantly monitor the price of imports and impose "specific, compound or mixed tariffs" when necessary to counter goods deemed to have unfairly low costs. Unlike typical tariffs — expressed as a percentage and applied to invoiced prices — specific tariffs could be set in US dollars and applied against a select weight or other unit of measurement. Wooden furniture imports from the UK, Japan and European Union are subject to lower, discounted rates meant to reflect separate trade deals inked with the US. Those from the UK are being assessed at 10%, whereas those from Japan and the EU now are subject to 15% charges. 

Key insight: Citigroup's net income for the third quarter rose by double-digits.Forward look: The megabank slightly tweaked its guidance for full-year revenues and expenses. Supporting data: Revenues for Citi's banking business, which includes investment banking, rose 34% year over year.This news is developing. Please check back for updates.Citigroup's latest earnings performance once again topped Wall Street expectations, as each of the megabank's five business lines reported record third-quarter revenue and higher returns. Citi's net income surged 16% year over year, totaling $3.8 billion for the quarter ending Sept. 30. Firmwide revenues came in at $22.1 billion, up 9% compared with the same quarter last year.Earnings per share totaled $1.86. Analysts had been expecting earnings per share of $1.72, according to S&P Capital IQ. Earnings per share would have totaled $2.24 if not for a previously disclosed goodwill impairment charge of $726 million that Citi took in connection to its deal to sell a 25% stake of Banamex, its Mexican retail banking franchise, to a local businessman.In a press release Tuesday morning, CEO Jane Fraser said the bank's multiyear overhaul is finally paying off. Fraser — who is American Banker's Most Powerful Woman in Banking for the fifth consecutive year — has been overseeing the revamp for nearly five years."The relentless execution of our strategy is delivering stronger business performance quarter after quarter and improving our returns," Fraser said in the release. "The cumulative effect of what we have done over the past years — our transformation, our refreshed strategy, our simplification — have put Citi in a materially different place in terms of our ability to compete."During the third quarter, each of Citi's businesses maintained their streak of achieving positive operating leverage, with revenues outpacing expenses. Citi's banking business, which includes investment and corporate lending, led the way with revenues up 34% year over year. Revenues for the markets business, which includes fixed income markets and equity markets, rose 15%, while revenues for wealth, services and U.S. personal banking rose by high single digits.Firmwide expenses of $14.3 billion rose 9% compared with the year-ago quarter. The increase was due in part to the goodwill impairment charge as well as higher compensation and benefits.The $2.6 trillion-asset company is still charging toward a key profitability metric target, return on tangible common equity, which it has set at 10-11% by 2026. During the third quarter, it came in at 8%. It would have been 9.7% if not for the goodwill impairment charge, the company noted in the release.Citi returned $6.1 billion to shareholders, including $5 billion in share repurchases and the remaining in dividends. Year to date, the bank has returned $12 billion, Fraser said.The company slightly tweaked its guidance for the full year. At the end of July, Citi said that revenues would be $84 billion and expenses would be $53.4 billion. Now the bank said both those figures would be higher, but didn't specify by how much.Read more about Citigroup here: https://www.americanbanker.com/organization/citigroupCiti's agreement to sell a 25% stake in Banamex to the businessman, Fernando Chico Pardo, is the latest chapter in its longstanding plan to exit that business. The deal is expected to close in the second half of 2026, pending regulatory approvals, Citi said Tuesday in an earnings presentation. The bank plans to divest the rest of the franchise through an initial public offering.A little over a week later, Citi received a competing bid that offered to buy the entire franchise. In response, the bank maintained that its preferred path is to complete the deal with Pardo, though it planned to review and assess the competing offer, according to a Reuters report.The Banamex divestiture is one of 14 overseas market contractions that Citi has pursued during Fraser's tenure. Earlier this year, Citi said its Polish subsidiary, Citi Handlowy, had agreed to sell its consumer banking business to Velobank. That deal is expected to close by mid-2026.

Key insight: JPMorganChase saw strong dealmaking and trading boost profits in the third quarter.Forward look: The company left guidance for net interest income and expenses materially unchanged.Supporting data: The company's investment banking fees rose 16% from the prior year, to $2.6 billion.This news is developing. Check back for updates.JPMorganChase saw profits climb 12% in the third quarter, as bread-and-butter Wall Street activities and the as-yet stable state of consumers kept the bank on track to meet, or exceed, its earnings guidance.The country's largest bank by assets logged $14.4 billion in its most recent quarter, the bank announced Tuesday, as lower rates and deposit margin compression kept year-over-year net interest income excluding markets relatively flat. But strong investment banking business helped push markets revenue up 25%.JPMorgan brought in $5.07 in diluted earnings per share in the third quarter, which ended Sept. 30, beating consensus analyst estimates of $4.81 for another quarter.CEO Jamie Dimon said in a prepared statement Tuesday morning that the bank is also monitoring potential threats to the economy."While there have been some signs of a softening, particularly in job growth, the U.S. economy generally remained resilient," Dimon said. "However, there continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation."The $4.6 trillion-asset company's investment banking unit saw the benefit from additional economic certainty during the third quarter, as mergers and acquisitions picked up momentum. Investment banking revenues were up 16% year over year, beating the bank's guidance of a low-double-digit percentage increase.The company's provision for credit losses, of $3.4 billion, was up 9% from the prior year, and 19% from the second quarter.Of the provision, $809 million came from the commercial and investment bank, driven by charge-offs related "to what appears to be borrower-related collateral irregularities in certain secured lending facilities and changes in credit quality of certain exposures," the bank said.JPMorgan was reported to have counted losses from the bankruptcy of used-car seller Tricolor Holdings, which filed for Chapter 7 liquidation last month after allegations of fraud. Some other banks have reported that they may have lost between $30 million and $200 million in charge-offs from their connections to Tricolor.In consumer and community banking, which had been tepid for years, average deposits remained flat, but client investment assets rose 15% from the prior year. Loans increased just 1% from the same period last year, but debit and credit card sales volume ticked up 9%. Home lending was still depressed, down 3% from the prior year, but card services and auto business was up 12%.Still, Dimon's continual warnings about the geopolitical balance have made more waves in JPMorgan's strategic planning.Security backdropThe earnings news comes on the heels of JPMorgan announcing plans to funnel $1.5 trillion into the security industries, amid increasing trade friction between the U.S. and China. The bank pledged Monday to increase its capital, resources and personnel allocations into sectors like rare earth minerals, pharmaceutical precursors and robotics, or ventures developing defense, aerospace and energy technologies.Last week, President Donald Trump announced he would impose a 100% tariff on goods from China after the country said it would more strictly control exports of items that use traces of rare earths, along with the technology for processing them."It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing — all of which are essential for our national security," Dimon said in a statement Monday announcing the bank's target. "We need to act now."

A key Republican housing regulator's responses to an inquiry from Sen. Catherine Cortez Masto, D-Nev., on the status of several Federal Home Loan Bank reforms suggests few are likely to move forward. Federal Housing Finance Agency Director Bill Pulte, who oversees the Federal Home Loan Banks, said in a letter to the senator posted on X that he has been "rescinding and revising" supervisory guidance that is "no longer applicable" to their activities.The FHFA, which Pulte has rebranded US Federal Housing, lists FHLB advisory bulletins related to fair lending and housing compliance, climate risk, and pilot and advisory programs as rescinded in 2025.Pulte said Cortez Masto, who broke ranks with her party in budget talks, would have his ear if she had additional feedback. He called her inquiries about several items related to FHLB risk management and affordable housing support "relatively constructive.""Director Pulte has taken meaningful steps to roll back unnecessary regulatory burdens that limited the FHLBanks' ability to fully serve their members," said Ryan Donovan, president and CEO of The Council of Federal Home Loan Banks. "With a primary focus on safety and soundness, he has demonstrated his support for the FHLBanks' core mission of serving as reliable providers of liquidity and a key source of support for housing, both of which are essential to the FHLBanks' ability to continue empowering local communities."Cortez Masto voted against Pulte's confirmation but has shown a willingness to reach across the aisle on other occasions besides the budget.She has been involved in at least one bipartisan legislative proposal related to FHLB pay with Sen. Andy Kim, R-N.J. Cortez Masto also floated another reform bill earlier this year aimed at strengthening the system's focus on housing finance and community development.Separately, Pulte took issue with allegations in a letter from Sen. Elizabeth Warren, D-Mass. and some other Democrats, that an interagency group called the Federal Housing Finance Oversight Board related to their assertion that it has not met in years. As previously reported, statutory language shows regular FHFOB meetings have been required for some time but it appears that outside a Freedom of Information Act request in 2017 noted in Warren's letter there had been little public information about them until recently. Warren's office has not responded to inquiries.As far as the call for more transparency, Pulte said the statute "does not require the board to publish information related to its meetings."The letter followed Pulte's mention of one of the meetings between FHFA, the Securities and Exchange Commission, Department of Housing and Urban Development and the Treasury as the Trump administration's exploration of new types of Fannie Mae-Freddie Mac reform.While the meetings haven't been public, Pulte reiterated interest in feedback on Fannie and Freddie's conservatorship status, which they've had since the Great Financial Crisis. "The agency welcomes all dialogue on this important issue, including perspectives from members of Congress," Pulte said.Most recently, the Trump administration has been exploring possibly exploring new public stock-offering related to Fannie and Freddie. A scenario in which they stay in conservatorship with the government retaining a stake is currently considered the most likely, if it moves forward.

Douglas Lebda, the founder and chief executive officer of LendingTree Inc., died Sunday following an all-terrain vehicle accident. He was 55."We are deeply saddened by the sudden passing of Doug," LendingTree's board of directors said in a statement. The accident occurred on his family farm in North Carolina. He is survived by his wife, Megan Lebda, and his three daughters.Lebda founded LendingTree in 1996 after "experiencing the frustrations and complexities of getting his first mortgage," according to the Charlotte, North Carolina-based company's website. He led the company through its initial public offering in 2000, and its sale about three years later to IAC Inc. In 2008, Lebda joined the newly rebranded LendingTree as it spun out as a separate company.PAST COVERAGE: LendingTree hit with suit connected to Snowflake hackLendingTree combines a network of hundreds of financial partners to help customers access lending products including mortgages, mortgage refinances, auto loans, personal loans, business loans and student refinances. LendingTree's chief operating officer and president, Scott Peyree, is serving as president and CEO, effective immediately. Peyree was appointed by the company's board of directors. Steve Ozonian, lead independent director, has been appointed by the board to serve as its chairman. "The news of losing Doug was devastating," Peyree said in a statement. "But one of the most immediate impacts of his legacy is the strong management team he put in place at LendingTree."Lebda was a graduate of Bucknell University and earned an MBA at the University of Virginia, Darden School of Business, according to the company's website. Before founding LendingTree, Lebda worked as an auditor and consultant.  

Key insight: Treasury said it will abolish the CDFI Fund in reduction in force notices handed out to employees on Friday. Forward look: The CDFI funding that's already been appropriated could be subject to what's called a "pocket recession," a move likely to be legally challenged. What's at stake: Millions of dollars for banks and other financial firms that lend to customers across the political spectrum could never reach those customers if the program and its staff are gutted. WASHINGTON — The Trump administration is gutting the Community Development Financial Institutions Fund staff as it pursues significant reductions in force on Friday. Russell Vought, head of the Office of Management and Budget, said on social media that the layoffs — which the Trump administration has been threatening since the beginning of the government shutdown Oct. 1 — have begun. That shutdown shows little sign of ending soon as Democrats refuse to pass a continuing resolution to keep the government funded without extending health care subsidies that, if expired, they say would raise health insurance costs for many Americans. The CDFI Fund is wrapped up in the mass layoffs, according to documents viewed by American Banker. "The [Reduction in Force] is necessary to implement the abolishment of the Community Development Financial Institutions (CDFI) which is based upon the Department of Treasury determination that its programs, projects, and activities do not align with the President's priorities," the RIF notices say. The layoffs will be effective in mid-December, they say. The Trump administration earlier this year targeted the CDFI Fund in an executive order that aimed to abolish the fund, to the extent that it would be statutorily allowed, a move that received immediate pushback from both sides of the aisle in Congress because of the bipartisan support that the program has seen throughout its history. In a note to OMB, also obtained by American Banker, Treasury Secretary Scott Bessent said that all the CDFI programs are statutorily mandated. This should mean that the program cannot be abolished by an executive order. Nonetheless, OMB has not allowed the Treasury to begin the process for disbursing the money appropriated to the CDFI, and the RIF notices show that the Trump administration still plans on abolishing the fund. Vought has argued in favor of using "pocket recessions" for funds appropriated by Congress for programs that the executive branch decides it doesn't want. Under current law, a president can propose cuts to a program that has already been funded by making a request to Congress, which in turn has 45 legislative days to respond. A pocket recession is when a president proposes those cuts too late in the fiscal year for Congress to consider them for the required 45 session days.CDFIs thought they received something of a reprieve late last month when OMB told attendees at a meeting that it had committed to disbursing the CDFI funds. The Treasury Department released a supplemental portion for already-submitted applications that would allow institutions to remove climate-focused financing from a list of eligible activities to receive the funds. It also removed definitions of "eligible markets" related to race or ethnicity. CDFIs would not get approved for funds on the basis of those items being on their CDFI application, and it would not count positively toward firms' eligibility. Those supplemental applications are due Oct. 27, but that could be pushed back due to the government shutdown. OMB at the time did not commit to a timeline for awarding the appropriated funds.

Key Insight: A higher volume of litigation necessitates the hiring of more defense and appellate counsel.What's at Stake: A shortage of attorneys could delay rulemakings and weaken the agency's defense in federal courts. Supporting Data: By some estimates, about 500 employees have left the agency since the Trump administration took over and Vought told employees to "stop working and stand down." The Consumer Financial Protection Bureau is hiring attorneys to defend the agency in appellate litigation.The CFPB announced in an internal email last week that it has two job openings for attorney-advisors in the legal division of the bureau's Office of Litigation. The internal email was sent Oct. 1 to the bureau's enforcement staff from Rebecca Gelfond, the bureau's chief of staff for enforcement,.Experts said the CFPB needs to beef up its legal defense staff because the agency faces so many lawsuits and is working to issue rulemakings to reverse existing rules put into place under the Biden administration. The jobs involve providing legal advice and guidance "to Bureau clients on all relevant legal matters," the email states. The internal hiring is unusual because of the ongoing lawsuit with the agency's union and the fact that the majority of staff at the agency are not actually working, but are being paid, despite the government shutdown. The CFPB's acting Director Russell Vought was sued by the National Employee Treasury Union in February over Vought's efforts to fire up to 90% of the bureau's staff. For now, the agency has been enjoined by a court order from firing employees or engaging in any reduction-in-force, or RIFs.So many CFPB employees have left the CFPB that it now is offering jobs within the bureau to enforcement attorneys. Some suggest that because Vought has said enforcement and supervision are not core functions, jobs in the legal division could be shielded from RIFs. The legal and enforcement divisions at the CFPB are two separate entities that perform different functions and require different skillsets. The legal division handles all litigation and advises the rest of the agency, including enforcement and rulemaking divisions, on what is legal and permissible. Enforcement, by contrast, builds cases against supervised financial institutions.Both divisions have lost staff since Vought took over in February, with some estimating that at least 500 employees have departed since that time. Of those, roughly 90 attorneys have left the enforcement division, which has roughly 160 staffers, a 35% drop. That brain drain that has made it more difficult for Vought to accomplish his regulatory objectives, even if they are deregulatory in nature. The email described the attorney-advisor jobs as providing "legal representation for the CFPB in all phases of litigation and trial and an appellate fora." The attorney-advisors' duties involve drafting and responding to motions, pleadings and other legal filings, handling all aspects of discovery, conducting negotiations and representing the CFPB at oral argument, the email states. Attorneys also counsel clients, including the bureau's leadership and senior staff, "with respect to legal compliance, litigation risk and other issues," the email states, including "collaborating with the Justice Department, Federal Trade Commission, and prudential regulators and others in the litigation of cases relative to the bureau's consumer protection mission."The jobs involve providing legal advice and collaborating with other agencies on consumer protection cases. Many former and current CFPB employees think Vought has engaged in a prolonged campaign to alienate the bureau's staff. Vought, who also serves as the director of the Office of Management and Budget, has said that he wants federal workers — who used to be called civil servants but now are referred to as "the deep state" — to be "traumatically affected." He also has said that when federal workers wake up in the morning "we want them to not want to go to work." Last week President Trump posted on X a montage of Vought depicted as the mythological Grim Reaper, in a black cap and scythe, to lyrics mimicking Blue Oyster Cult's 1976 hit "The Reaper," while federal employees are depicted as zombies in an unemployment line. The CFPB did not respond to a request for comment. CFPB legal attorneys also file amicus briefs to help courts decide significant questions of federal consumer financial law and review records of lawsuits by or against the CFPB in which the decision was unfavorable to the agency. The attorneys would then determine whether to recommend an appeal to a higher court. In addition, the email states that the attorneys research and draft final appellate determinations of administrative Freedom of Information Act appeals, and facilitate consideration of and responses to subpoenas seeking confidential CFPB materials.

It’s now been 10 days since the government shutdown began and mortgage rates appear to be moving lower.They were already near three-year lows heading into the shutdown, and now with it dragging on, bond yields are falling as well.The 10-year bond yield, which serves as a bellwether to 30-year fixed mortgage rates, was down nearly 10 basis points (bps) this morning.It’s nearing the all-important 4% threshold, which if broken could lead to another leg down for mortgage rates.But the more ominous takeaway here is that the economy doesn’t look so good anymore.Bond Yields Drop as Gov Shutdown Hits Day 10As noted, the 10-year bond yield was down nearly 10 bps this morning despite the release of any government data.We missed what is arguably the most important data point last Friday, the monthly jobs report from the Bureau of Labor Statistics.And a slew of other reports, but the BLS is reportedly “bringing some furloughed workers back in” to get the CPI report for September released.While it likely will be delayed (since the release date is October 15th), the hope is apparently to get it out before the Fed’s next meeting on October 28th.Of course, the odds of another 25-bp cut in the federal funds rate is still at nearly 95%, per CME FedWatch.So it’s doubtful any piece of data released between now and then will make much of a difference.There’s just a general vibe that the economy has kind of turned, even though the stock market is ripping higher without a care in the world.But given stocks are trading near all-time highs, a pullback could be in store soon and that could lead to a rally in bonds.Investors typically flee the stock market when times get tough and pile into safe-haven bonds, which increases the price of bonds but lowers with associated yield.When that happens, interest rates on mortgages tend to move lower.So there’s a decent thesis here that mortgage rates could move markedly lower in the fourth quarter of the year.For reference, back in December 2024 I predicted a 30-year fixed in the high 5s by the end of the year, and we aren’t far off at the moment.I’ve also explained that mortgage rates tend to move lower during government shutdowns, so between that fact and the very weak labor data as of late, there’s a lot of downward pressure on mortgage rates.Mortgage Rates Slip Below Year-Ago Levels (Again)Meanwhile, mortgage rates are already beating their year-ago levels, per the latest weekly survey from Freddie Mac.The mortgage financier said the 30-year fixed hit 6.30% this week, down from 6.34% a week ago and 6.32% this time last year.The lowest reading for the 30-year fixed in 2024 was 6.08% last September, but it was very short-lived as an errant hot jobs report and subsequent election caused rates to shoot higher.However, it doesn’t seem there is much standing in the way of lower mortgage rates this year, with economic data decidedly poor and much of Trump’s policy baked in.That doesn’t mean we won’t see pullbacks or surprises, but it does feel like the “trend is our friend” right now for mortgage rates.Meaning there’s a decent chance they could move lower and beat all the readings for 2024 at some point this year.And dare I say dip below 6%, which would be the lowest reading since very early February 2023.In the meantime, even if mortgage rates are kind of stuck due to a data blackout, they’re in a pretty good spot.Given they were flirting with 7% on multiple occasions this year, entering a government shutdown at around 6.25% seems pretty fortuitous.Read on: How to track mortgage rates with ease. Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)

When it comes to learning about today's housing market, a majority of potential buyers are going digital, turning toward artificial intelligence and social media for information, according to Realtor.com.A majority of potential buyers said they are excited about how AI can help personalize their home search experience, and 82% are using it in their research, according to the real estate platform's summer survey. ChatGPT and Gemini rank at the top of the AI platforms they feel comfortable utilizing, with respondent shares of 67% and 54%, respectively. Social media also plays an important role in how buyers learn about housing trends, with an overwhelming majority of 90% finding value in it. Youtube and Facebook are the most commonly used platforms, with shares of 73% and 57%. Among Generation Z specifically, though, 76% said they relied on Tiktok. "From AI platforms to social media, consumers are expanding where they turn for insights. This shift shows that the future of real estate will be shaped not only by market conditions, but also by how quickly people adopt fresh tools and perspectives to navigate them," said Realtor.com Chief Economist Danielle Hale in a press release.  As artificial intelligence tools have improved and expanded throughout finance and business services, including in the mortgage industry, consumers have shown greater willingness to go digital. Distrust from all sides of the housing transaction remains about potential AI flaws and the accuracy of some of the content generated.  Where does the real estate agent fit in?Yet despite the acceleration and adoption of technology among the homebuying public, consumers still prioritize the value of professional expertise. Real estate agents outranked artificial intelligence and social media when buyers considered the resources that made them "smarter" about the housing market. Agents just edged out artificial intelligence by a share of 62% to 61%, the survey showed. More buyers also considered the real estate agent community the most valuable use of their time in their home-search plans above all other resources. Almost two-thirds, or 65.6%, deemed agent consultations and correspondence as a positive use of their time in their home search. The share outpaced the 61.9% who thought as highly of artificial intelligence tools. AI, though, ranked ahead of buyers' friends, families and neighbors when it came to positive time usage, which came in at 57.8%. Television, social media and news lagged, but a majority still consider them valuable resources. "The housing market remains a challenge for both buyers and sellers, and Americans are responding by embracing new ways to get smarter about their decisions," Hale noted. 

New York Attorney General Letitia James was indicted by a federal grand jury in Virginia, making her the second of President Donald Trump's perceived political enemies to be criminally charged in two weeks.James was charged with one count of alleged bank fraud and one count of making false statements to a financial institution. The indictment made public on Thursday follows allegations from Trump administration officials that James engaged in mortgage fraud. READ MORE: Feds accuse Trump adversary Letitia James of loan fraud"These charges are baseless, and the president's own public statements make clear that his only goal is political retribution at any cost," James said in a statement. "He is forcing federal law enforcement agencies to do his bidding, all because I did my job as the New York State Attorney General." James, who won a civil case against Trump two years before he won a second term as president, has denied committing mortgage fraud. Her attorney, Abbe Lowell, said in a statement James would "fight these charges in every process allowed in the law."Loan ApplicationsThe Justice Department's probe into James stemmed from claims by Federal Housing Finance Agency Director Bill Pulte that she may have committed mortgage fraud based on the residence status she listed on loan applications. The indictment alleges that to get favorable mortgage terms James falsely represented that a Norfolk, Virginia property she bought in 2020 would be used as a secondary residence. Prosecutors claim that James actually used it as an investment property that she rented to a family, and didn't intend to occupy it.  Trump had called for legal action against James in a message to Attorney General Pam Bondi on social media last month. "We can't delay any longer, it's killing our reputation and credibility," Trump wrote in a Truth Social post. "JUSTICE MUST BE SERVED, NOW!!!"READ MORE: Cook allegations suggest new mortgage fraud prioritiesJames had campaigned on promises to investigate Trump. In 2022, her office sued Trump and his real estate company, alleging he reaped hundreds of millions of dollars in "illegal profit" by inflating the value of assets, including his Mar-a-Lago estate and Trump Tower penthouse. The complaint alleged Trump and his two eldest sons carried out the scheme for years so he could get better loan terms from Deutsche Bank AG and other lenders.James won after a trial in which Trump took the witness stand and denied wrongdoing. A judge set the penalty at $464 million. But a New York appeals court in August vacated the fine, ruling it was unconstitutionally "excessive," while upholding the judge's finding that Trump and his company were liable for fraud. Both sides have appealed, escalating the case to the state's highest court.Trump's defense team blasted James during the trial, saying the case was politically motivated. The judge who oversaw the case declined to toss it out on those grounds, but a dissenting appeals court judge who disagreed with the liability verdict agreed with Trump.The White House didn't immediately respond to a request for comment.'Criminal Acts'The US Attorney's Office in the Eastern District of Virginia, now headed by Lindsey Halligan, also recently secured a grand jury indictment against former FBI Director James Comey, whose prosecution the president also publicly called for. Comey has said he's innocent and is fighting the charges in court."The charges as alleged in this case represent intentional, criminal acts and tremendous breaches of the public's trust," Halligan said in a statement. The charges carry potential penalties of as much as 30 years in prison per count and a $1 million fine on each count, as well as forfeiture, according to the statement. James' initial appearance in US District Court in Norfolk, Virginia, is set for Oct. 24.The push by some Trump officials to pursue charges against James had appeared to be stalled until recently. Erik Siebert, who had been leading the Virginia US attorney's office, resigned his post last month amid pressure. Siebert had determined there wasn't enough evidence to support charges against James, Bloomberg News had reported.However, Trump then installed Halligan as interim US attorney. Previously, Halligan was a senior aide at the White House and was tasked with leading an initiative to review exhibits at the Smithsonian's museums to ensure that they reflect American "excellence" as laid out in an executive order.Halligan also represented Trump against charges of mishandling classified documents after his first term. She previously was an insurance lawyer in Florida and graduated from the University of Miami School of Law.The charges against James — coming on the heels of Comey's arraignment this week — immediately fueled allegations that prosecutors were improperly using the office to punish the president's perceived enemies.New York Democratic Senator Charles Schumer accused Trump of using the Justice Department "as his personal attack dog" and going after James for pursuing charges against the president."This isn't justice," he said. "It's revenge."