One’s allegedly a rental condo in Atlanta.
The other is a single-family home in Ann Arbor, Michigan.
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And both properties are the reasons why Federal Housing Finance Agency Director William Pulte, a staunch Trump ally, wants the Department of Justice to open a criminal investigation against Federal Reserve Governor Lisa D. Cook, the first Black woman to serve on the Fed.
Pulte, in a 44-page formal criminal referral letter obtained by TheStreet, asks Attorney General Pam Bondi to investigate whether Cook committed mortgage, bank, and wire fraud, plus other charges, while obtaining mortgages for both properties in 2021.
Related: Housing market chief Pulte sends blunt message on Fed interest rate cuts
No charges have been filed.
It’s not clear whether Bondi will investigate.
But President Donald Trump shared his strong opinion in a four-word message on TruthSocial Aug. 20: “Cook must resign, now!!!”
Cook, in a statement late Aug. 20, said she had no intention of stepping down because “of some questions raised in a tweet.”
Image source: Bloomberg/Getty Images
Cook’s seen as a monetary policy dove
The alleged incidents occurred before Cook joined the Fed as a temporary replacement in 2022. She is now serving a full term that will end in 2038.
“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 facts,” Cook said in her statement.
The Department of Justice had no comment on the letter. Pulte did not return an email interview request.
Cook has deep expertise in macroeconomics, economic history, and innovation. While at the Fed, her speeches have focused on how technology, labor markets, and productivity dynamics intersect with the Fed’s dual mandate of stable prices and maximum employment.
When it comes to monetary policy, Cook is generally thought of as a dove who has advocated for a mindful, data-dependent approach, emphasizing flexibility and caution in adjusting interest rates.
This approach is very similar to that of Fed Chair Jerome Powell’s “wait-and-see” stance on interest rates.
According to the Fed’s official biography, Cook took office as a member of the Board of Governors on May 23, 2022, to fill an unexpired term ending Jan. 31, 2024.
She was reappointed on Sept. 8, 2023, and sworn in on Sept. 13, 2023, for a term ending Jan. 31, 2038.
Prior to her appointment, Cook was a professor of economics and international relations at Michigan State University.
Related: Top housing official sends Fed Chair Powell blunt message on mortgage rates
From 2018 to 2021, she was director of the American Economic Association Summer Training Program.
She was also a research associate at the National Bureau of Economic Research.
Previously, Cook was on the faculty of Harvard University’s Kennedy School of Government.
From 2011 to 2012, she served as a senior economist on the Council of Economic Advisers under President Barack Obama.
Cook received a B.A. in philosophy from Spelman College.
As a Marshall Scholar, she received a second B.A. in philosophy, politics, and economics from Oxford University.
She earned a Ph.D. in economics from the University of California, Berkeley.
Pulte wants a “safe and sound market”
Bloomberg News broke the story late on Aug. 19, reporting that Pulte cited four criminal statutes against Cook for Bondi to investigate for potential legal charges.
“We have to make sure we have a safe and sound market,” Pulte said in a CNBC interview Aug. 20. “We refer people almost every day to the DOJ. And if we see politicians do it, they’re going to be treated the same.”
Pulte insisted that the letter and its allegations, which included the mortgage paperwork on both properties, were not a political ploy.
“It’s just black and white. People can see it. This is straightforward,” Pulte said.
He also said on social media that the mortgage fraud allegations give President Trump the right to fire Cook.
“It wouldn’t matter if she is a Republican or a Democrat,’’ he told CNBC, adding, “How can we have someone in this position commit mortgage fraud?”
Pulte cites allegations of mortgage and other fraud
The centerpiece of the communication was a formal criminal referral letter addressed to Bondi and Justice Department official Ed Martin are copies of Cook’s mortgage applications for the homes in Michigan and Georgia.
According to Pulte’s letter, Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Pulte said Cook took a mortgage on a property in Ann Arbor, Michigan, signing an agreement that stipulated she would use the property as her primary residence for at least a year.
Two weeks later, according to the letter, she took another mortgage on a Georgia property and also declared it would be her primary residence.
Obviously, only one venue could be a primary residence during the same time period.
Pulte also called on Bondi to look into whether Cook misrepresented her financial circumstances by later listing the Georgia property for rent.
The letter includes an apparent Georgia rental listing from 2022, a little over a year after she bought the Atlanta property.
Rental properties typically have greater financial lending requirements than primary residences.
White House once again targets political foes
Pulte’s office did not respond to email questions as to whether other members of the Federal Reserve were under investigation.
Trump’s administration has also pursued mortgage fraud allegations against high-profile Democrats, including California Senator Adam Schiff and New York Attorney General Letitia James.
Both are longtime political foes of President Trump.
The Cook referral expands that effort to the Fed, as Trump allies including Pulte press the independent central bank to lower rates and Powell to resign before his term expires in May.
Cook was nominated to the Fed by former President Joe Biden, and her permanent appointment was decided by a 51-50 vote in the Senate after then-Vice President Kamala Harris broke the tie.
More Federal Reserve:
- GOP plan to remove Fed Chair Powell escalates
- Trump deflects reports on firing Fed Chair Powell ‘soon’
- Former Federal Reserve official sends bold message on ‘regime change’
Another Fed governor resignation would create a third opening for the president to fill on the Fed board in the next year, potentially tipping the balance of Republican appointees to four of its seven members.
Treasury Secretary Scott Bessent is in the process of interviewing about a dozen candidates to fill Powell’s seat as chair.
President Trump has explicitly said he will only nominate someone who agrees with his demands to lower interest rates.
This stance has a chilling effect on markets and Fed watchers, who fear that move would greatly compromise the independence of the central bank.
The Trump administration has also pursued mortgage fraud allegations against high-profile Democrats, including California Senator Adam Schiff and New York Attorney General Letitia James. Both are longtime political adversaries of the president.
Sen. Elizabeth Warren, a top Democrat on the Senate Banking Committee, criticized Pulte’s criminal referral, calling it a political attack on Cook.
“I’ve long been an advocate for holding Fed officials accountable,” Warren said. “But anyone can see that for months now, President Trump has been scrambling for a pretext to intimidate or fire Chair Powell and members of the Federal Reserve Board while blaming anyone but himself for how his failed economic policies are hurting Americans.
“The President and his administration should not weaponize the Federal government to illegally fire independent Fed Board members,” Warren said.
Related: Fed’s Jackson Hole conference could mean fireworks this week
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