Legal representatives for Federal Reserve Governor Lisa Cook have launched a robust defence against what they term 'baseless' allegations of mortgage fraud levelled by the Trump administration.
Legal Battle Intensifies Over Property Discrepancies
In a detailed letter addressed to US Attorney General Pam Bondi and Deputy Attorney General Edward Martin, Cook's lawyer Abbe Lowell systematically dismantled accusations that Cook misrepresented multiple residences to secure favourable mortgage rates. The dispute centres on three properties: a home in Ann Arbor, Michigan, a condo in Atlanta, Georgia, and a home in Cambridge, Massachusetts.
Lowell asserted that Cook's primary residence has always been in Ann Arbor, where she has been a professor at Michigan State University since 2005. Although currently on unpaid leave while serving on the Fed board, Cook fully intends to return to Ann Arbor once her term concludes.
Contextualising the Property Documentation
Regarding the Atlanta property, purchased in 2021 to be near family, Lowell acknowledged that one line on the mortgage application listed it as a primary residence but characterised this as 'inadvertent' and an 'isolated notation'. He emphasised that proof of criminal wrongdoing requires demonstrating intentional misrepresentation to defraud lenders, which he argues is absent.
Other loan documents consistently identified the Atlanta condo as a vacation home, and Cook's annual financial disclosures accurately listed it as a 'personal residence'. For the Cambridge property, acquired before her move to Ann Arbor, documentation consistently classified it as a second home and rental property.
Political Motivations Alleged
The legal response specifically criticises William Pulte, a Trump ally and director of the Federal Housing Finance Agency (FHFA), accusing him of exploiting his position to target Trump's political opponents. Lowell noted that Pulte has pursued similar mortgage fraud allegations against other prominent Trump critics, including New York Attorney General Letitia James and Democratic Senator Adam Schiff.
Lowell's letter highlights apparent hypocrisy, pointing to recent reports revealing that four members of Trump's cabinet, including Treasury Secretary Scott Bessent, had similar discrepancies in their mortgage documents without facing equivalent scrutiny from Pulte's agency.
The legal confrontation escalated when Donald Trump briefly dismissed Cook from her position as a Fed governor and voting member of the Federal Reserve board. However, the Supreme Court reinstated her and will hear arguments regarding her removal in January.
Lowell concluded that the complete documentation demonstrates no criminal intent, stating: 'Governor Cook’s loan documents made clear her intended uses and, therefore, were not submitted with an intent to mislead the lender or anyone else.'
