Fed Governor Lisa Cook Responds to Trump’s Calls to Resign Laura Benton 28 minutes ago 2 min read 4397 views President Donald Trump on Wednesday demanded the resignation of Federal Reserve Governor Lisa Cook after U.S. Federal Housing Finance Agency head Bill Pulte filed a criminal referral to the Justice Department, accusing her of mortgage fraud. According to the referral, Cook falsely claimed two different properties as her “primary residence” in order to secure more favorable mortgage terms. Details of the alleged fraud On June 18, 2021, Cook obtained a mortgage for a property in Ann Arbor, Michigan, affirming that it would be her principal residence within 60 days of the loan agreement. Just two weeks later, on July 2, 2021, she purchased a condominium in Atlanta, Georgia, and entered into a 30-year mortgage agreement stating that the condo would also serve as her primary residence for at least one year. Public records indicate the Atlanta property was listed for rent in September 2022. However, Pulte’s referral states that Cook’s federal financial disclosures for 2022 and 2023 did not include any rental income connected to the condo. Pulte argued that these representations could amount to occupancy fraud, since mortgage borrowers are generally prohibited from designating multiple properties as their primary residence at the same time. Trump: “Cook must resign” Following the referral, Trump took to Truth Social to demand Cook’s immediate resignation. “Cook must resign, now!!” the president wrote. Background Cook was appointed by President Joe Biden in 2022. Her role involves shaping U.S. monetary policy at a time when the Fed is under intense political pressure over interest rates, inflation, and housing affordability. Update: Lisa Cook Responds In response to Trump’s calls to resign, Cook said in a statement: “I learned from the media that FHFA Director William Pulte posted on social media that he was making a criminal referral based on a mortgage application from four years ago, before I joined the Federal Reserve. I have no intention of being bullied to step down from my position because of some questions raised in a tweet.”
As noted in the comments, the property never was rented out. It was listed to be rented and never got a tenant. If this is correct then she has not committed mortgage fraud. People should really take a look at the requirements for a property to be considered primary in a mortgage application. It states that you plan to occupy the property as a primary residence for a period of one year. Noting that you are also allow to occupy the property part-time and still have it considered to be a primary residence (For example, what snowbirds do). If you rent out your primary property after the one year period and still keep the mortgage -- then there are no issues or violation of law.
Trump is bloviating again. He has no grounds whatsoever to fire Lisa Cook. Trump threatens to fire Fed’s Lisa Cook if she doesn’t resign https://thehill.com/homenews/administration/5465573-trump-threatens-fire-fed-governor-cook/ President Trump said Friday he would fire Federal Reserve Gov. Lisa Cook over allegations she committed mortgage fraud if she does not resign, which Cook has indicated she will not do. “Yeah, I’ll fire her if she doesn’t resign. What she did was bad. So I’ll fire her if she doesn’t resign,” Trump told reporters during a stop at The People’s House exhibition near the White House. Trump called for Cook to resign Wednesday following allegations by Bill Pulte, a Trump ally and the head of the Federal Housing Finance Agency, that she committed mortgage fraud. Pulte said his agency sent a criminal referral to the Department of Justice (DOJ) regarding the allegations against Cook. In his series of posts, Pulte included photographs of document signatures apparently belonging to Cook that allegedly applied to two different primary residences, one in Michigan and another described as an “Atlanta condo.” Cook responded by saying she would not be “bullied” into leaving her post, which would give Trump the ability to appoint her replacement. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she said in a statement. “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.” The president can fire members of the Federal Reserve board for cause, but it’s unclear if the allegations alone would reach that standard. Trump has for months aggressively attacked Federal Reserve Chair Jerome Powell and broadly criticized other members of the Fed board over their decision not to lower interest rates. Powell said Friday the central bank faces “significant uncertainty” as it attempts to navigate the impact of Trump’s policies, suggesting the bank could cut rates soon.