By Sarah N. Lynch and Andrew Goudsward

WASHINGTON (Reuters) -Senior fraud investigators at Fannie Mae believed there was no clear evidence to prove that New York Attorney General Letitia James committed mortgage fraud, according to new information disclosed by James’ legal team in a filing on Monday.

The filing, which asks a federal judge to dismiss the criminal charges against James on the basis of outrageous government conduct, reveals some new details about how people inside Fannie Mae viewed the investigation into James and the role that Trump ally Bill Pulte, the nation’s top housing regulator, played in shaping the probe.

In June communications between Fannie Mae’s Director of Mortgage Fraud Sean Soward and Jennifer Horne, the vice president of financial crimes at Fannie, Soward e

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