Federal Reserve Governor Lisa Cook Disputes Mortgage Fraud Allegations

Tue Nov 18 2025 02:15:55 GMT+0200 (Eastern European Standard Time)

In a recent letter, lawyers for Federal Reserve Governor Lisa Cook countered accusations of mortgage fraud against her, raised by a Trump administration official, suggesting the claims are politically motivated.

Federal Reserve Governor Lisa Cook has formally disputed allegations of mortgage fraud made by a Trump administration official. The accusations have led to attempts by former President Trump to remove Cook, the first Black woman on the Federal Reserve Board. Cook's attorneys argue the claims lack credible evidence, asserting that her mortgage declarations were accurate. The Supreme Court is set to hear her case in January as tensions rise over the politicization of the Federal Reserve.

WASHINGTON (RTWNews) — In a recent letter, attorneys representing Federal Reserve Governor Lisa Cook challenged accusations from a Trump administration official claiming she committed mortgage fraud. This controversy stems from President Trump using these allegations as grounds to seek Cook's termination, marking a historic event as it's the first time a president has attempted to remove a Fed governor in over a century.

Cook's response comes after a criminal referral made in August by Bill Pulte, the director of the Federal Housing Finance Agency (FHFA), who has made similar allegations against several politicians, including high-profile Democrats. The accusations coincide with President Trump's ongoing criticisms of the Fed for not reducing interest rates sufficiently.

In her letter, Cook's attorney, Abbe Lowell, stated that the charges rely on a single questionable reference in a 2021 mortgage document. Lowell emphasized that the claims fail to establish any fraudulent intent, insisting, There is no fraud, no intent to deceive, and no basis to allege mortgage fraud. Cook is the first Black woman to serve on the Federal Reserve's board, having been appointed by President Biden in 2022.

The controversy intensified when Cook filed a lawsuit to retain her position. A Supreme Court ruling last month allowed her to remain while the case is investigated, with further arguments scheduled for January.

Pulte had previously accused Cook of claiming two distinct homes as her primary residence, a move that can yield financial benefits for mortgage applications. However, Cook's attorneys clarified that she predominantly lived in the Ann Arbor property and accurately represented her situation in all filings.

The situation surrounding Pulte has raised eyebrows, with allegations of partisan bias in his referrals. Critics note that while he aggressively pursued claims against Cook, he seemed reluctant to address similar situations involving Republican officials.

As this legal battle unfolds, the ramifications for the governance of the Federal Reserve and its independence remain a focal point of discussion within both political and financial communities.