The director of the Federal Housing Finance Agency is urging Attorney General Pam Bondi to investigate Federal Reserve Governor Lisa Cook over a pair of mortgages, the latest in a series of moves by the Trump administration to increase legal scrutiny of Democratic figures and appointees.
FHFA Director Bill Pulte, a staunch ally of President Donald Trump, wrote a letter to Bondi and DOJ official Ed Martin on Aug. 15 suggesting that Cook may have committed a criminal offense. The letter, a copy of which was seen by Bloomberg News, alleges that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
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Trump’s administration has pursued mortgage fraud allegations against high-profile Democrats, including California Senator Adam Schiff and New York Attorney General Letitia James. Both are longtime political foes of Trump.
The Cook referral expands that effort to the Fed, as Trump allies — including Pulte — press the US central bank to lower rates and Federal Reserve Chair Jerome Powell to resign before his term as chair expires in May.
No charges have been filed and it’s not clear whether Bondi will investigate. The Justice Department declined comment. The Federal Reserve declined comment. Cook did not respond to requests for comment late Tuesday.
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Pulte said Cook took a mortgage on a property in Ann Arbor, Michigan, signing a mortgage agreement that stipulated she would use the property as her primary residence for at least a year. Two weeks later, according to the letter, she took another mortgage on a Georgia property and also declared it would be her primary residence.
Pulte also called on Bondi to look into whether Cook misrepresented her circumstances by later listing the Georgia property for rental. The letter includes copies of mortgage documents in Cook’s name, as well as an apparent rental listing from 2022, a little over a year after she bought the Georgia property.
Trump has put substantial pressure on Powell and the Fed to lower rates, tarnishing the chairman as “Too Late” in social media posts arguing the Fed should have started slashing rates months ago, while also heavily criticizing Powell and the Fed over its ongoing headquarters renovation project.
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The documents in the referral show that Cook took a $203,000, 15-year mortgage on a property in Ann Arbor, Michigan, in 2021. The document included a stipulation that she “shall occupy, establish and use the Property as Borrower’s principal residence within 60 days” and “for at least one year,” unless the lender, the University of Michigan Credit Union, agreed in writing. The document is dated June 18, 2021, and it’s not clear whether the lender agreed to or was aware of her subsequent purchase.
Then, on July 2, 2021, Cook took a separate, 30-year mortgage, for $540,000 on a property in Georgia, according to the referral. Her mortgage loan there, too, has an occupancy clause stating the borrower must make it a primary residence within 60 days and for at least one year.
In his letter to Bondi, Pulte alleges that Cook “appears to have acquired mortgages that do not meet certain lending requirements and could have received favorable loan terms under fraudulent circumstances.”
Pulte cited four criminal statues for Bondi to investigate for potential charges.
Pulte also sent Bondi what appears to be a rental listing for the same Georgia unit, “indicating that the property was intended to be used as an investment/rental property, and not in fact a primary residence,” according to the letter.
Cook was nominated to the Fed by President Joe Biden and took office in 2022, becoming the first Black woman to serve on the Fed’s board of governors. She was later nominated by Biden for a full term, which expires in 2038.
The surprise early resignation of former Fed Governor Adriana Kugler, another Biden pick, gives Trump an early opening to nominate someone to the central bank’s board and steer its monetary policy trajectory more toward his preferred path. He has named one of his economic aides, Stephen Miran, to fill the slot on an interim basis.