Trump admin accuses Fed board member of mortgage fraud, calls for resignation

President Donald Trump’s push to reform the Federal Reserve intensified as he and Federal Housing Director William Pulte called for one of its board members to resign over alleged mortgage fraud.

“Cook must resign, now!!!” Trump posted Wednesday on Truth Social.

Lisa Cook, a Fed governor, is under scrutiny for reportedly claiming two different properties as her primary residence on mortgage applications.

Cook listed her home in Ann Arbor, Michigan, as her primary residence in 2021, then two weeks later identified a condo in Atlanta as her primary residence on another application.

“Ms. Cook: why did you designate your Atlanta condo as your primary residence two weeks after declaring your Michigan home as your primary residence?” Pulte asked on X, posting a photo of Cook shaking hands with Fed Chairman Jerome Powell at her May 2022 appointment to the board.

Pulte and Trump have criticized Powell, who has refused to lower interest rates since Trump took office in January despite months of positive economic data and low inflation.

Pulte, who oversees mortgage giants Fannie Mae and Freddie Mac, has also called for Powell’s resignation, claiming his decisions are blocking millions from homeownership.

On Friday, Pulte’s office sent a criminal referral letter to Attorney General Pam Bondi, asking the Justice Department to investigate Cook’s mortgages.

“According to mortgage documents obtained by U.S. Federal Housing, it appears an individual, Ms. Lisa DeNell Cook, has falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute,” the letter states. “This has included falsifying residence statuses for an Ann Arbor, Michigan-based residence and a Georgia-based property in order to potentially secure lower interest rates and more favorable loan terms.

“As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud, bank fraud, wire fraud, falsifying documents, or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA’s regulated entities and the security and stability of the U.S. mortgage market.”

The letter also states Cook listed the Atlanta condo for rent in September 2022, more than a year after she bought it, which is the standard period for a primary residence. But it says she did not report any rental income on government financial disclosures in 2022 or 2023.

Trump filling vacancies

If Cook resigns or leaves the board, it would open a second vacancy for Trump to fill.

Adriana Kugler, also a Biden appointee, left the board earlier this month, a move many attributed to Trump’s pressure on the Fed to adopt his policies.

Trump has nominated Stephen Miran, chair of his Council of Economic Advisers, to fill Kugler’s term through Jan. 31, 2026. At that time, his appointment could become permanent, or Trump could nominate someone else to serve until January 2037.

Fed governors serve 14-year terms. The president nominates them, and the Senate confirms. Republicans currently control the Senate, giving Trump an opportunity to reshape the seven-member board.

Biden reportedly nominated five members during his term, giving the board a liberal bent. Recent votes on interest rates have been decided by a 5-2 margin.

Trump has floated the idea of replacing Powell as chairman but has said he will not do so before Powell’s term ends in May 2026. Powell’s term as a Fed governor runs until 2028.

“Lisa Cooked is cooked,” Pulte posted on X. “How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?”

Featured image: Dr. Lisa Cook (via X)