Trump to Fed’s Cook: Resign now over mortgage probe

President Trump is demanding the resignation of Federal Reserve Governor Lisa Cook after his housing chief accused her of lying on mortgage applications. The allegations, if true, could force a shake-up at the central bank and hand Trump another appointment.

“Cook must resign, now!!!” Trump wrote in a Truth Social post Wednesday, including a link to a Bloomberg article about the accusations.

Federal Housing Finance Agency Director Bill Pulte shared on X earlier in the day a screenshot of a criminal referral to the Department of Justice regarding Cook’s alleged conduct. 

The head of Fannie Mae and Freddie Mac’s oversight agency says Cook falsely claimed two different mortgaged homes as her primary residence to secure a better rate on an Atlanta property, which she allegedly rented out.

Cook was nominated to the Fed by former president Joe Biden in 2022. Her term expires in 2038. Cook voted to maintain the federal funds rate in the latest Federal Open Market Committee meeting, and has not voted against the majority in rate decisions since she began her term, according to FOMC meeting statements. 

Pulte has long-criticized Federal Reserve Chairman Jerome Powell and the FOMC for not lowering the federal funds rate, which can but does not always lead to lower mortgage costs and greater origination activity. In a lengthy phone call with CNBC Tuesday, Pulte suggested Cook would have to resign or be fired, but also denied the accusation was political. 

“I say these things about Powell needing to resign and everything on the political side, this is very different,” he said. 

A spokesperson for the Federal Reserve said it did not have an immediate comment on the matter.

The director of the agency now called U.S. Federal Housing said his office makes mortgage fraud referrals on a daily basis and does not consider politics, wealth or profession—a remark seemingly aimed at New York Attorney General Letitia James, whom Pulte has also accused of fraud.

“I don’t understand how she can be in charge of setting interest rates for our country and here she is potentially lying on her applications to get better interest rates,” he said of Cook.  

Pulte’s latest accusation drew some ire Tuesday over its alleged political subtext. Aaron Klein, senior fellow at Brookings Institute, noted Trump has been found guilty himself for lying about loans, a reference to James’ victory in a civil fraud case against the then-former president in 2023.

“One [should ask the] question whether Pulte is running the same standards for everybody,” said Klein. 

What is the alleged mortgage fraud?

Unlike mortgage fraud accusations made against Trump foes like James and Sen. Adam Schiff, D-Calif., Pulte publicly shared more details of the criminal referral he sent to the Department of Justice. He told CNBC his office had received a tip about her conduct. 

Cook acquired a 15-year loan with the University of Michigan Credit Union for $203,000 plus interest, for an Ann Arbor, Michigan property. Two weeks later she purchased a $540,000 Atlanta condominium, with a mortgage from Bank Fund Staff Federal Credit Union. The FHFA alleges she represented in both applications that the properties would be her primary dwellings.

The letter cites “online records” showing the Atlanta condo was listed for rent in September 2022. Pulte posted to social media Tuesday a screenshot of the unit’s listing history, which matches a Zillow profile for the property. Cook’s financial disclosures for 2022 and 2023 also allegedly don’t show any rental income tied to her address. Pulte referred Cook under four criminal statutes, according to Bloomberg. 

Pulte also told CNBC his office is probing an additional Cook property in Massachusetts, but no wrongdoing has yet emerged. The DOJ has not said publicly whether it would investigate the claim. 

Should Cook depart the Fed, President Trump could appoint a replacement; he’s already set to replace ex-Fed gov. Adriana Kugler who stepped down this month. 

Pulte’s mortgage fraud initiative

The director has placed major emphasis on pursuing fraud since he took office in March, and has said the FHFA’s new tip line is very active. He also told CNBC he fired GSE board members at the beginning of his tenure because the incoming administration discovered numerous instances of multifamily fraud. 

In July Pulte confirmed a Trump post that Fannie Mae’s Financial Crimes Division found Schiff engaged in mortgage fraud, regarding the California lawmaker’s “primary residence” near Washington, D.C. New York state’s top cop James meanwhile was reportedly facing a federal grand jury investigation in May regarding mortgages in the Empire State and in Virginia. 

As of Tuesday, neither official had been indicted on criminal charges. 

The accusations against Cook came after Pulte posted a video earlier in the week promoting the Great American Mortgage Corporation, the entity Trump hinted could make its Wall Street debut this November. Pulte tied his fraud campaign Tuesday to that initiative, telling CNBC it was in the GSE’s business interest to root out misconduct. 

“Frankly, we talk about this potential IPO, or potentially selling shares one day, we need to make sure we have strong and sound businesses if and when we go to do that,” he said.

Maria Volkova contributed to this report.