Federal Reserve Governor Lisa Cook on Monday denied allegations that she committed mortgage fraud, responding to claims made by Trump-era officials in a letter to Attorney General Pam Bondi.
According to The Associated Press, accusations had prompted President Donald Trump to attempt the unprecedented step of removing a sitting Fed governor.
Cook’s attorney, Abbe Lowell, said the allegations rely on “one stray reference” in a 2021 mortgage document, which he described as “plainly innocuous in light of the several other truthful and more specific disclosures” about her homes.
“There is no fraud, no intent to deceive, nothing whatsoever criminal or remotely a basis to allege mortgage fraud,” the letter stated.
The claims, originally made by Bill Pulte, director of the Federal Housing Finance Agency, alleged that Cook listed multiple properties — in Ann Arbor, Michigan, Atlanta, Georgia, and Cambridge, Massachusetts — as her “primary residence,” potentially qualifying her for lower mortgage rates or smaller down payments.
Lowell said the references were isolated and did not reflect any intent to defraud. Cook disclosed her properties accurately in federal filings, including listing some as rental or second homes.
Cook, the first Black woman on the Fed’s governing board, was appointed in 2022 by former President Joe Biden. She sued to remain in her post after Trump sought her removal, and the Supreme Court allowed her to stay while the legal challenge proceeds. Arguments are scheduled for January.
Lowell also criticized Pulte for pursuing allegations selectively against Democrats, including New York Attorney General Letitia James and California lawmakers, while largely ignoring potential issues among Trump allies and Republicans.
“One would expect that he would have made referrals to you based on the same types of documents about others,” Lowell wrote.
The controversy underscores ongoing political tensions over Federal Reserve leadership and monetary policy. Trump had repeatedly criticized the Fed for not cutting interest rates quickly enough, and removing Cook would have allowed him to appoint a fourth governor, potentially giving him a majority on the seven-member board.
Lowell described the mortgage allegations as politically motivated, arguing that Pulte “transformed the little-known agency into a weapon to be brandished against President Trump’s political enemies.”
Cook’s legal team maintains that all of her mortgage filings were accurate and that no fraudulent intent existed in any of the transactions under scrutiny.
