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By Anna Commander and Hannah Parry
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Newly unearthed documents challenge the Trump administration's accusations that Federal Reserve Governor Lisa Cook committed mortgage fraud, Reuters reports.
Why It Matters
The dispute bears on two consequential issues: whether a federal housing regulator's referral to the Department of Justice (DOJ) was supported by documents that demonstrate criminal intent, and whether President Donald Trump lawfully can remove a Fed governor—an action that critics say threatens the Federal Reserve's independence amid political pressure to lower interest rates.
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What To Know
A loan estimate for an Atlanta property purchased by Cook, first obtained by Reuters, shows that she told the lender she planned to use it as a "vacation home."
Trump administration officials, led by Federal Housing Finance Agency Director Bill Pulte, have accused Cook of claiming both her Atlanta and Michigan properties as her primary residence, which would have potentially granted her better mortgage and tax rates.
Citing mortgage documents, Pulte referred Cook to the DOJ, which began a federal investigation. Trump also referenced the allegations as he attempted to fire her.
The declaration issued by Cook's credit union, however, appears to refute those allegations, Reuters notes.
The news outlet said it reviewed the loan estimate dated May 28, 2021, prepared by Bank-Fund Staff Federal Credit Union for Cook's Atlanta property that says: "Property Use: Vacation Home," which appears to contradict other paperwork cited by Pulte alleging that Cook marked multiple properties as primary residences.
Cook has sued to block her removal after Trump announced her firing, and a federal judge issued a preliminary injunction allowing her to remain on the Fed while the suit proceeds.
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What People Are Saying
Roger Stone on X in August: "Federal Reserve Governor Lisa Cook is cooked. Said her home in Ann Arbor, Mich. was her principal legal residence getting a state tax break and a lower mortgage and insurance rate. Two weeks later, she said her home outside of Atlanta was her principal legal residence getting a state tax break and a lower mortgage and insurance rate. This is mortgage fraud."
Democratic Senator Elizabeth Warren of Massachusetts on X in August: "Trump's attempting to fire Lisa Cook to turn the Federal Reserve into the 'Central Bank of Trump.' The Fed makes decisions based on economic data—not political pressures. This move would undermine the world's confidence in our economy and harm working people. And it is illegal."
Trump in his termination letter, in part: "At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator."
What Happens Next
Cook's lawsuit challenging her removal is set to proceed, as she has denied any allegations of wrongdoing about her properties, Reuters notes.
Update 9/12/25, 8:12 p.m. ET: This article has been updated with additional information.
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