Federal Reserve Governor Lisa Cook is facing scrutiny after a loan estimate associated with her condominium, purchased in June 2021, labeled the property as a “vacation home.” This characterization may undermine the Trump administration’s allegations that Cook committed mortgage fraud by allegedly claiming both her condo and another property as her primary residence. President Trump has sought to terminate Cook “for cause,” aiming to restructure the Federal Reserve to facilitate significant interest rate reductions.
Further complicating the matter, Cook filled out a security clearance form where she referred to the same property as a “second home.” In response to her attempted dismissal, Cook has initiated a lawsuit against the Trump administration, marking a historic case as it is the first time a president has sought to remove a sitting member from the seven-person board of governors. Recently, Cook secured an injunction that permits her to continue serving as a Fed governor.
The administration has since appealed the ruling and seeks an emergency decision ahead of the Federal Reserve’s impending meeting, where a majority of economists predict a potential rate cut of a quarter point.
Adding to the controversy, Bill Pulte, a Trump appointee on the board that oversees mortgage giants Fannie Mae and Freddie Mac, has alleged that Cook’s documentation includes conflicting claims that both her Atlanta property and a home in Ann Arbor, also purchased in June 2021, were both designated as “primary residences.” This has prompted Pulte to submit a criminal referral to the Justice Department, which has initiated an investigation into the matter.
Claiming a property as a “primary residence” can provide more favorable down payment and mortgage terms than if classified as a vacation property. Notably, Fulton County tax records indicate that Cook has not filed for a homestead exemption on the condo, which would reduce property taxes for a primary residence, since acquiring it in 2021. As tensions mount, the White House has yet to issue a comment on the evolving situation.
