Federal Reserve Governor Lisa Cook Responds to Mortgage Fraud Allegations

Tue Nov 18 2025 03:30:51 GMT+0200 (Eastern European Standard Time)

In a recent letter to Attorney General Pam Biondi, attorneys for Federal Reserve Governor Lisa Cook challenge accusations of mortgage fraud, sparking significant political discourse around her position and potential removal by the Trump administration.

Federal Reserve Governor Lisa Cook's legal team has issued a response to allegations of mortgage fraud following a criminal referral from a Trump administration official. The accusations have led to calls for Cook's dismissal, marking a historic precedent. Cook is currently fighting to retain her position while the case is set to be heard by the Supreme Court in January. The allegations center around her declarations of primary residences, which her attorney argues are baseless. As the first Black woman on the Fed’s board, the outcome carries significant implications for the central bank's leadership.

WASHINGTON (AP) — In a letter to Attorney General Pam Biondi on Monday, lawyers for Federal Reserve Governor Lisa Cook disputed allegations by a Trump administration official that she committed mortgage fraud.

President Donald Trump used the accusation as a basis to seek her firing, the first time a president has sought to remove a Fed governor in the central bank’s 112-year history.

The letter marks the first response from Cook regarding a criminal referral made in August by Bill Pulte, director of the Federal Housing Finance Agency. Pulte has made similar allegations against prominent Democrats, including New York Attorney General Letitia James, Senator Adam Schiff of California, and Representative Eric Swalwell.

Cook's potential firing is positioned against the backdrop of Trump’s continual criticism of the Fed for not promptly reducing interest rates. A dismissal of Cook would enable Trump to appoint a fourth member to the Fed's board, granting him a controlling majority.

The Federal Reserve Governor has since filed a lawsuit to maintain her position, with the Supreme Court ruling last month that she can remain while the case proceeds. Arguments in the case are scheduled for January.

In the letter, Cook's attorney, Abbe Lowell, noted that the case hinges on a stray reference in a 2021 mortgage document, claiming that it is plainly innocuous compared to other disclosures regarding Cook's properties.

There is no fraud, no intent to deceive, nothing whatsoever criminal or remotely a basis to allege mortgage fraud,” the legal communication emphasized.

Cook, who made history as the first Black woman on the Fed’s governing board after her appointment by President Biden in 2022, faces significant scrutiny amidst the ongoing allegations. A Justice Department spokesperson stated that the department does not comment on ongoing investigations.

In August, Pulte accused Cook of mortgage fraud for claiming two homes in different states — one in Ann Arbor, Michigan, and the other in Atlanta — as her primary residence, potentially influencing favorable mortgage terms.

Despite these claims, Lowell asserted that Cook predominantly resides in the Ann Arbor home and accurately represented it as her primary residence on mortgage applications, reinforcing that she only referred to the Atlanta condo as a vacation home in prior disclosures.

Lowell concluded by pointing out the need for evidence of intent to commit fraud, which they argue is entirely lacking in Cook's case. He criticized Pulte's selective pursuit of allegations against Democrats while ignoring similar accusations involving Republicans.

As the case unfolds, it could not only redefine Cook's future but also impact the current landscape of the Federal Reserve's governance.