The director of the Federal Housing Finance Agency is urging Attorney General Pam Bondi to examine Federal Reserve Governor Lisa Cook over a pair of mortgages, the most recent in a sequence of strikes by the Trump administration to enhance authorized scrutiny of Democratic figures and appointees.
FHFA Director Bill Pulte, a staunch ally of President Donald Trump, wrote a letter to Bondi and DOJ official Ed Martin on Aug. 15 suggesting that Cook might have dedicated a legal offense. The letter, a replica of which was seen by Bloomberg News, alleges that Cook “falsified financial institution paperwork and property information to purchase extra favorable mortgage phrases, probably committing mortgage fraud underneath the legal statute.”
READ MORE: Pulte takes concern with Powell assertion on Fed housing function
Trump’s administration has pursued mortgage fraud allegations towards high-profile Democrats, together with California Senator Adam Schiff and New York Attorney General Letitia James. Both are longtime political foes of Trump.
The Cook referral expands that effort to the Fed, as Trump allies — together with Pulte — press the US central financial institution to decrease charges and Federal Reserve Chair Jerome Powell to resign earlier than his time period as chair expires in May.
No expenses have been filed and it is not clear whether or not Bondi will examine. The Justice Department declined remark. The Federal Reserve declined remark. Cook didn’t reply to requests for remark late Tuesday.
READ MORE: Pulte urges Congress to examine Powell
Pulte mentioned Cook took a mortgage on a property in Ann Arbor, Michigan, signing a mortgage settlement that stipulated she would use the property as her major residence for at the least a yr. Two weeks later, in accordance to the letter, she took one other mortgage on a Georgia property and likewise declared it might be her major residence.
Pulte additionally known as on Bondi to look into whether or not Cook misrepresented her circumstances by later itemizing the Georgia property for rental. The letter contains copies of mortgage paperwork in Cook’s identify, in addition to an obvious rental itemizing from 2022, a bit of over a yr after she purchased the Georgia property.
Trump has put substantial stress on Powell and the Fed to decrease charges, tarnishing the chairman as “Too Late” in social media posts arguing the Fed ought to have began slashing charges months in the past, whereas additionally closely criticizing Powell and the Fed over its ongoing headquarters renovation mission.
READ MORE: Feds accuse Trump adversary Letitia James of mortgage fraud
The paperwork within the referral present that Cook took a $203,000, 15-year mortgage on a property in Ann Arbor, Michigan, in 2021. The doc included a stipulation that she “shall occupy, set up and use the Property as Borrower’s principal residence inside 60 days” and “for at the least one yr,” except the lender, the University of Michigan Credit Union, agreed in writing. The doc is dated June 18, 2021, and it is not clear whether or not the lender agreed to or was conscious of her subsequent buy.
Then, on July 2, 2021, Cook took a separate, 30-year mortgage, for $540,000 on a property in Georgia, in accordance to the referral. Her mortgage mortgage there, too, has an occupancy clause stating the borrower should make it a major residence inside 60 days and for at the least one yr.
In his letter to Bondi, Pulte alleges that Cook “seems to have acquired mortgages that don’t meet sure lending necessities and will have obtained favorable mortgage phrases underneath fraudulent circumstances.”
Pulte cited 4 legal statues for Bondi to examine for potential expenses.
Pulte additionally despatched Bondi what seems to be a rental itemizing for a similar Georgia unit, “indicating that the property was supposed to be used as an funding/rental property, and never the truth is a major residence,” in accordance to the letter.
Cook was nominated to the Fed by President Joe Biden and took workplace in 2022, turning into the primary Black girl to serve on the Fed’s board of governors. She was later nominated by Biden for a full time period, which expires in 2038.
The shock early resignation of former Fed Governor Adriana Kugler, one other Biden choose, provides Trump an early opening to nominate somebody to the central financial institution’s board and steer its financial coverage trajectory extra towards his most well-liked path. He has named one among his financial aides, Stephen Miran, to fill the slot on an interim foundation.