Introduction
Introduction Statistics Contact Development Disclaimer Help
.-') _ .-') _
( OO ) ) ( OO ) )
.-----. ,--./ ,--,' ,--./ ,--,'
' .--./ | \ | |\ | \ | |\
| |('-. | \| | )| \| | )
/_) |OO )| . |/ | . |/
|| |`-'| | |\ | | |\ |
(_' '--'\ | | \ | | | \ |
`-----' `--' `--' `--' `--'
lite.cnn.com - on gopher - inofficial
ARTICLE VIEW:
Trump has accused Fed Governor Lisa Cook of mortgage fraud. Here’s
what that is
By Jeanne Sahadi, CNN
Updated:
9:13 AM EDT, Wed September 10, 2025
Source: CNN
As part of his effort to gain control over the Federal Reserve,
President Donald Trump is attempting to fire Fed Governor Lisa Cook
based on allegations that she may have committed mortgage fraud.
No charges have been filed against Cook as of this writing. But just
before Labor Day, she challenging Trump’s effort to remove her. On
Tuesday night, a , finding that on first look Cook’s claim that she
was improperly fired is a valid one and that it violated her rights
under the Fifth Amendment
Meanwhile, the Department of Justice last week an investigation into
the matter, according to reports.
There are many types of mortgage fraud. The perpetrator could be any
person or company involved in the mortgage transaction, such as the
homebuyer, lender, mortgage broker or appraiser. Or it could be carried
out by investors or criminal rings using “straw buyers” who agree
to be the official purchaser of a property to secure the mortgage.
But based on what is known of the administration’s allegations, it
appears the accusation is that Cook may have committed what’s known
as “occupancy fraud” pertaining to mortgages she had on — one in
Ann Arbor, Michigan, and one in Atlanta.
What is occupancy fraud?
At the federal level, someone commits occupancy fraud when they falsely
declare a property will be their primary residence in order to obtain a
mortgage tied to a federally insured bank or credit union or to
federal government agencies, like the Federal Housing Administration.
Occupancy fraud was the most common type of mortgage fraud during the
mid-2000s housing bubble, according to the US Treasury’s . And a 2023
report from the found that such fraud wasn’t limited to the housing
bubble, “but also persists through more recent times.”
Why is falsely declaring a ‘primary residence’ a big deal?
Typically, a person seeking a mortgage for a primary residence is more
likely to get a lower interest rate — with less stringent credit
requirements and a smaller down payment — than they would for a
second home or an investment property.
That’s because mortgages on primary residences typically have lower
delinquency rates than mortgages for other property purchases.
For instance, “with a second property you may only get a 15-year loan
at a higher interest rate and be required to have a higher credit
score,” said criminal defense attorney Jeffrey Buehner, who has
represented clients accused of white-collar crime, including mortgage
fraud. (Buehner noted he is not connected to nor commenting on the
situation between the president and Cook.)
How is occupancy fraud classified and what are the penalties?
Under federal law, occupancy fraud is a felony. If someone is found
guilty, they could face up to 30 years in prison and up to $1 million
in fines.
(Depending on state law, it also could be subject to prosecution in the
jurisdiction where the fraud is alleged to have occurred, Buehner
said.)
But if prosecuted under the federal statutes, the extent of the
punishment may fall far short of the maximum sentencing and fine
guidelines.
“The penalties are driven by the loss amount,” said Christine
Adams, a civil and criminal defense attorney who used to work as a
federal prosecutor on complex fraud matters, including mortgage fraud,
for the United States Attorney’s Office in the Central District of
California. Like Buehner, Adams is not connected to the Trump-Cook
situation.
In other words, did a person’s false statement influence the
lender’s or federal agency’s decision to make a loan they otherwise
wouldn’t have made? And did any entity involved lose money as a
result? If so, was it a large amount?
During her time as a federal prosecutor, Adams said that her office
would only take on cases in which the losses exceeded amounts specified
under federal guidelines in place at the time.
How can prosecutors prove occupancy fraud?
If a person is charged with occupancy fraud, the prosecution must show
beyond a reasonable doubt that a defendant committed the crime, Buehner
said.
How that is done depends on the particulars of a case. But one way a
prosecutor might approach it, Adams said, is “you’ll talk to
whoever spoke to the person who secured the loan. What did they say to
you? Those are admissions. You will look at emails, text messages and
all their conduct. Did they do or say anything that indicated they knew
(what they did) was wrong?”
And, she added, it could mean tying together facts of their life to
show it’s unlikely they didn’t falsely and intentionally declare a
property a primary residence. “It could be ‘You bought this home in
Park City, but you live and work in Pasadena and your kids go to school
there.’”
<- back to index
You are viewing proxied material from codevoid.de. The copyright of proxied material belongs to its original authors. Any comments or complaints in relation to proxied material should be directed to the original authors of the content concerned. Please see the disclaimer for more details.