FHFA chair Michael Pulte sent a letter to the attorney general alleging that Cook falsified bank documents and property records to secure more favorable mortgage terms, potentially committing mortgage fraud. The letter states Cook obtained a mortgage on a Michigan house and later a loan on an Atlanta condominium, each represented as her principal residence, and that the Atlanta condo was listed as a rental in 2022. There is no accusation or evidence of loan default. President Trump demanded Cook’s resignation and appears to be seeking grounds to remove Fed governors to install leadership favoring rate cuts. Pulte has used FHFA control over Fannie Mae and Freddie Mac and has made similar accusations against other perceived political opponents.
She took out a mortgage on a house in Michigan represented to be her principal residence, and shortly thereafter a loan on a condominium in Atlanta that was also described as her principal residence, according to Pulte's letter. It further asserts that she listed the Atlanta condo as a rental property in 2022, despite having asserted in mortgage documents it would serve as her primary residence. There is no accusation or evidence that Cook has defaulted on either loan.
Between the lines: President Trump appears to be building a case to fire Fed governors for cause as he seeks leadership of the central bank that will cut interest rates and be more responsive to his instincts. His appointees have similarly been arguing that cost overruns in the central bank's $2.5 billion headquarters renovation amount to cause to oust Chair Jerome Powell before his term is up in May.
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