Trump housing regulator accuses Fed governor Cook of mortgage fraud
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Federal Reserve governor LIsa Cook. Photo: Al Drago/Bloomberg via Getty Images
Federal housing finance regulator Bill Pulte accused Federal Reserve governor Lisa Cook of mortgage fraud and referred her for criminal prosecution.
Why it matters: It comes as the president seeks to clean house at the Fed and install governors more to his liking.
Driving the news: Pulte, chair of the Federal Housing Finance Agency, posted on X a letter to the attorney general stating that it appears Cook "has falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statutes."
- She took out a mortgage on a house in Michigan represented to be her principal residence, and shortly thereafter a loan on a condominium in Atlanta that was also described as her principal residence, according to Pulte's letter.
- It further asserts that she listed the Atlanta condo as a rental property in 2022, despite having asserted in mortgage documents it would serve as her primary residence.
- There is no accusation or evidence that Cook has defaulted on either loan.
What they're saying: President Trump posted on Truth Social this morning that "Cook must resign, now!!!"
The other side: "I learned from the media that FHFA Director William Pulte posted on social media that he was making a criminal referral based on a mortgage application from four years ago, before I joined the Federal Reserve," Cook said in a statement late Wednesday.
- "I have no intention of being bullied to step down from my position because of some questions raised in a tweet," she continued.
- "I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts."
Between the lines: Trump allies appear to be building a case to fire Fed governors for cause, as the president seeks leadership of the central bank that will cut interest rates and be more responsive to his instincts.
- His appointees have similarly been arguing that cost overruns in the central bank's $2.5 billion headquarters renovation provide grounds to oust chair Jerome Powell before his term is up in May.
- The Wall Street Journal reported Wednesday morning that Trump is considering firing Cook for cause, citing two sources.
- Cook was appointed to the Fed Board of Governors in 2022 by then-president Biden; her current term extends until 2038. She is the first Black woman to serve as a Fed governor.
The intrigue: Cook has been a relatively dovish figure within the Fed, ironically showing openness to the kinds of interest rate cuts Trump seeks.
State of play: Pulte has been using his agency's control over the nation's mortgage finance system — it is the regulator of Fannie Mae and Freddie Mac, and Pulte has also installed himself as chair of both companies — to pursue perceived enemies of the president.
- The agency has made similar accusations against California Sen. Adam Schiff and New York Attorney General Letitia James.
Editor's note: This story has been updated with Cook's statement.
