Fed Governor Lisa Cook Denies Mortgage Fraud Allegations Amid New Trump Administration Attempt to Remove Her
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Federal Reserve Governor Lisa Cook, represented by attorney Abbe Lowell, says she has never committed mortgage fraud and challenges the White House's effort to dismiss her, citing lack of legal cause.
Federal Reserve Governor Lisa Cook has responded to a new attempt by the White House to remove her from the Board of Governors, asserting that she has never engaged in mortgage fraud. In a letter dated Wednesday, her lawyer Abbe Lowell told White House counsel David Warrington that the allegations, originally raised by Federal Housing Finance Agency head Bill Pulte, are "unfounded and untrue" and that there is no legally cognizable basis for her removal.
The Trump administration previously sought to dismiss Cook after Pulte claimed she falsified mortgage documents for properties in Ann Arbor, Michigan, and Atlanta, Georgia. Both homes were purchased before Cook’s confirmation as a Fed governor during the Biden administration. Cook filed a lawsuit arguing that the president may remove Fed governors only "for cause" under federal law. In June, the Supreme Court allowed her to remain in office while the case proceeds, noting that she was entitled to notice and an opportunity to respond to the accusations.
The White House’s August 5 letter outlined the mortgage-fraud claims and set a August 26 deadline for Cook to respond. Deputy chief of staff Dan Scavino said Cook listed the Atlanta condominium as her "primary" residence on a mortgage document, despite also designating the Ann Arbor home as primary, and that she allegedly failed to disclose rental income after briefly listing the Atlanta unit for rent.
Lowell countered that Cook’s designation of a "primary" residence was an inadvertent oversight on a form supplied by her lender, and that she consistently identified Michigan as her primary residence. He argued that the lender could classify the Atlanta mortgage as either primary or secondary and that no preferential interest rate was received. Regarding the rental-income claim, Lowell said Cook decided not to rent the condo after listing it.
Lowell and fellow attorney Norm Eisen said they are prepared to return to court to challenge any unlawful attempt to terminate Cook’s appointment. Critics have warned that the president’s actions could undermine the independence of the Federal Reserve.