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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Trump has accused Fed Governor Lisa Cook of mortgage fraud. Here’s | |
what we know | |
By Samantha Delouya, Bryan Mena, CNN | |
Updated: | |
8:58 PM EDT, Mon August 25, 2025 | |
Source: CNN | |
President Donald Trump said late on Monday that he has fired Federal | |
Reserve Governor Lisa Cook, citing allegations of mortgage fraud that | |
haven’t been taken to court. There’s still a lot we don’t know | |
about the situation. | |
The firing, in a letter that was also posted to social media, came a | |
week after Federal Housing Finance Agency Director Bill Pulte alleged | |
in a letter that she claimed two properties — a home in Ann Arbor, | |
Michigan, and a condo in Atlanta — as her primary home addresses | |
within two weeks of purchasing each with financing. Pulte accused her | |
of having “falsified bank documents and property records.” | |
The Justice Department said it but hasn’t formally announced any | |
charges as of Monday evening. | |
A CNN review of mortgage documents shows that Cook did take out | |
mortgages for two properties, both of which were listed as her | |
principal residence. However, it’s not known why she did so or if she | |
did so intentionally. | |
President Donald Trump and his allies have , a Michigan State | |
University economist appointed by former President Joe Biden in 2022, | |
as part of a campaign to pressure the Fed to lower interest rates. | |
Trump on Friday told reporters he planned to fire Cook if she didn’t | |
resign. The president can fire a Fed board member, but only for cause. | |
In response to Pulte’s accusations, Cook said in a statement that she | |
has “no intention of being bullied to step down from my position.” | |
“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,” she said. | |
Here’s what we know — and what we don’t. | |
Questions surround two primary residences and a third mortgage | |
Listing a property as a “primary” residence can come with | |
advantages. Borrowers can qualify for lower interest rates for a | |
primary residence, saving money over the life of a loan, to real estate | |
company Redfin. | |
In mortgage documents filed in 2021 and reviewed by CNN, Cook pledged | |
to live in her Ann Arbor home as her primary residence for at least one | |
year, unless her lender agreed otherwise or unforeseen circumstances | |
arose. | |
Just two weeks later, she made the same pledge in mortgage documents | |
for her Atlanta condo, according to records reviewed by CNN. | |
Under IRS rules, a person can claim only one primary residence, the | |
place they live most of the time, per year. The Fed declined to comment | |
on CNN’s request asking if Cook is currently based in Washington and | |
whether she rents or owns in the area. | |
It is unclear whether Cook informed the Ann Arbor lender that she | |
intended to designate another property as her primary residence in the | |
same year. | |
The University of Michigan Credit Union, which issued Cook’s 2021 | |
loan for the Ann Arbor home, did not respond to a request for comment. | |
Bank-Fund Staff Federal Credit Union, which issued the loan to Cook for | |
her Atlanta condo, did not respond to multiple attempts for comment | |
either. | |
The Fed declined to share whether there were extenuating circumstances | |
that would have required Cook to designate a second primary residence | |
two weeks after designating the first one. | |
“If mortgage fraud is proven and the case proceeds to sentencing, | |
it’s typically charged as a federal crime,” said Patrick Delahunty, | |
a former federal prosecutor who now works as an attorney focused on | |
white-collar criminal investigations. “The sentence would depend upon | |
the loss suffered by the bank or lender that extended the loan.” | |
Key details we still don’t know | |
In Cook’s case, the details aren’t clear and very little | |
information has been publicly released. Delahunty said that to prove | |
mortgage fraud, prosecutors would need to show that either the Michigan | |
or Georgia lenders would have made a different decision if Cook had | |
listed one of the properties as a secondary residence. | |
He added that Cook may have simply erred by designating both homes as | |
her primary residence, noting that the complexity of the mortgage | |
process is often used as a defense in such cases. | |
“The false statement would have to be intentional at the time it was | |
made,” he said. | |
On Thursday, Pulte claimed that he was also probing a third property | |
owned by Cook but provided no further details on its location or any | |
alleged wrongdoing. | |
Pulte also pointed to Cook’s latest financial disclosure, which shows | |
she took out three mortgages in 2021. Two of them, one with Bank-Fund | |
Staff Federal Credit Union and another with Members First Mortgage, are | |
listed as personal residences. A third mortgage, also with Bank-Fund | |
Staff Federal Credit Union, is listed as an investment property. | |
Having two properties listed as “personal residences” isn’t | |
evidence of wrongdoing. The term differs from “primary residence.” | |
A person may have multiple personal residences, but only one can count | |
as their primary home. | |
Cook’s latest financial disclosures do not list the University of | |
Michigan Credit Union as a mortgage lender, though one of her loans may | |
have since been transferred to another lender. Members First Mortgage | |
did not respond to a request for comment. | |
The financial disclosures of government officials, which are required | |
by law, don’t have to include addresses for any mortgages listed. | |
It’s unclear which loan belongs to which property — and a single | |
property can sometimes have multiple mortgages. | |
Pressure on the Fed | |
The attacks on Cook are an extension of the Trump administration’s | |
intense pressure campaign against the politically independent Fed — | |
and other perceived enemies of the president. | |
In July, Trump suggested that a at the Fed’s Washington, D.C. | |
headquarters might be sufficient cause to fire Fed Chair Jerome Powell. | |
Pulte, Trump’s FHFA Director, has also called for mortgage fraud | |
investigations into Democratic Sen. Adam Schiff of California and New | |
York Attorney General Letitia James. | |
In a statement, Schiff’s attorney, Preet Bharara, “the very | |
definition of weaponization of the justice process.” James’ | |
attorney, Abbe Lowell, against her was “the most blatant and | |
desperate example of this administration’s carrying out the | |
president’s political retribution campaign.” | |
Those investigations have been led by Ed Martin, a Justice Department | |
lawyer who was the Special Attorney for Mortgage Fraud. Like Pulte, | |
Martin has been a reliable attack dog for the Trump administration. | |
A Fed official can be fired only by the president for “cause,” | |
which is generally interpreted to mean for malfeasance or a dereliction | |
of duty. | |
This story has been updated with additional context and developments. | |
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