Lawyers representing Lisa Cook, a governor of the Federal Reserve, have rejected allegations of mortgage fraud put forward by the Trump administration, calling them “baseless” and accusing officials of selectively citing discrepancies to support their claims. These accusations suggest that Cook misrepresented several residences as her primary home to secure more favorable mortgage rates.
The controversy escalated when former President Donald Trump briefly dismissed Cook from her position on the Federal Reserve board, which plays a crucial role in setting interest rates. However, her dismissal was contested, and the Supreme Court has decided to hear arguments in January regarding the legality of her removal.
In a detailed defense letter to U.S. Attorney General Pam Bondi and Deputy Attorney General Edward Martin, Cook’s attorney, Abbe Lowell, clarified the nature of the dispute, which centers on three properties: a home in Ann Arbor, Michigan; a condominium in Atlanta, Georgia; and a residence in Cambridge, Massachusetts. According to Lowell, Cook’s primary residence is in Ann Arbor, where she has been a professor at Michigan State University since 2005. Although she is on unpaid leave to serve on the Federal Reserve board, Cook plans to return to her Ann Arbor home following the conclusion of her term.
Lowell noted Cook’s ties to Atlanta, recounting her decision to purchase a condo there to be closer to her family. He argued that an erroneous line on her mortgage application categorizing the Atlanta property as a primary residence was made “inadvertently” and was merely a “one-time notation.”
To establish any criminal wrongdoing, evidence must show that Cook intentionally misrepresented her property to defraud lenders. However, other documents indicate that Cook referred to the Atlanta condo as a vacation home and accurately listed it as a “personal residence” in annual financial disclosures.
Regarding her Cambridge property, purchased before she moved to Ann Arbor, Lowell emphasized that Cook has consistently indicated this home as a secondary residence and rental property on mortgage documents.
Lowell also criticized William Pulte, a Trump supporter and director of the Federal Housing Finance Agency (FHFA), claiming he misused his position to target political adversaries. Pulte has similarly accused other political figures, including New York Attorney General Letitia James and Democratic Senator Adam Schiff, of mortgage fraud.
“Governor Cook’s materials make it clear that her actions do not constitute the criminal wrongdoing that Director Pulte and the president allege,” Lowell stated. He added that while Pulte professes a commitment to holding all individuals accountable for mortgage fraud, it has been reported that numerous members of Trump’s cabinet, including Treasury Secretary Scott Bessent, also exhibit similar discrepancies in their mortgage applications, suggesting a double standard in enforcement.
Lowell concluded that if Cook’s situation warranted accusations of fraud, similar cases involving Trump administration members should have led to referrals to the Justice Department as well, indicating a lack of consistency in Pulte’s approach to the allegations.