Washington — Federal Reserve Governor Lisa Cook has strongly denied allegations from the Trump administration accusing her of mortgage fraud related to two properties, one in Ann Arbor, Michigan, and another in Atlanta.

In a letter dated Wednesday to the White House, Cook's attorney Abbe Lowell stated that attempts to remove Cook based on accusations by Bill Pulte, head of the Federal Housing Finance Agency, would "ignore the facts and the law." Lowell told White House counsel David Warrington that the claims against Cook are "unfounded and untrue."

"Governor Cook has never committed mortgage fraud or any intentional wrongdoing, and there is no legally cognizable cause for removing her from the Federal Reserve Board," the letter said.

The properties in question were purchased before Cook was confirmed as a Federal Reserve governor during the Biden administration. The Trump administration's effort to remove her began last year following Pulte's claims that Cook falsified mortgage documents.

Cook has filed a lawsuit challenging her removal, arguing it violates federal law that permits the president to remove Fed governors only "for cause." In June, the Supreme Court ruled 5-4 that Cook must be given notice and an opportunity to respond to the allegations before termination, which she had not received.

White House deputy chief of staff Dan Scavino alleged in a letter that Cook signed mortgage agreements classifying both the Atlanta condominium and her Ann Arbor home as her "primary" residence. The White House also claimed Cook listed the Atlanta property for rent about 14 months after signing the mortgage but did not disclose rental income in her 2022 and 2023 financial disclosures.

Cook's legal team maintains that the mortgage agreement was provided by her lender and emphasizes the importance of trustworthiness in financial matters for a Board of Governors member.

Sources