Politics
Federal Reserve Governor Faces Mortgage Fraud Allegations
WASHINGTON, D.C. — Federal Reserve Governor Lisa Cook is facing accusations of mortgage fraud, which her lawyers assert are unfounded. The Justice Department is reviewing these allegations after a referral from Bill Pulte, director of the Federal Housing Finance Agency.
Pulte claims Cook wrongfully designated multiple properties as her primary residence when obtaining mortgages. These allegations gained traction after President Donald Trump suggested firing Cook from her position, leading her to file a lawsuit to retain her job, with the Supreme Court set to hear her case next year.
Cook’s attorney, Abbe Lowell, has publicly refuted the charges. In a detailed letter, he stated that Cook’s mortgage applications were accurate and that any supposed contradictions were misinterpreted and incomplete. “The referrals are baseless and should not have been made in the first place,” he emphasized.
The allegations focus on three properties Cook owns in Michigan, Georgia, and Massachusetts. Pulte claims she misrepresented their status in mortgage documents, which Lowell contends is untrue. Cook, who has held various academic and government roles, adjusted her primary residence claims depending on her employment and living conditions.
Lowell noted a minor error in documents concerning a condo Cook purchased in Atlanta, where one application inaccurately classified it as a primary residence. He maintained this was an inadvertent mistake and not indicative of an intent to deceive.
In Cook’s defense, Lowell explained her residency history back to 2002 when she bought her first home. He stated that Cook has consistently updated her mortgage documents to reflect changes in her primary residence. According to Cook’s lawyer, living outside the property temporarily does not disqualify it from being classified as her principal residence.
“There is no fraud, no intent to deceive, nothing criminal about her actions,” Lowell concluded. The Justice Department has declined to comment on the ongoing inquiry.
