FHFA Director Refers Fed Governor Cook to DOJ Amid Trump Firing Attempt

Federal Housing Finance Agency (FHFA) Director Bill Pulte has announced a second criminal referral to the Department of Justice (DOJ) targeting Federal Reserve (Fed) Governor Lisa Cook, as former President Donald Trump seeks to oust her. Pulte alleged in a post on X that the new referral concerns a mortgage loan on Cook's Cambridge, Massachusetts, condo and accuses her of making false statements in government ethics filings about that condo and two other properties she owns. “Three strikes, you’re out,” Pulte wrote, referring to his referral to the DOJ. His post included images of letters addressed to Attorney General Pam Bondi and senior DOJ official Ed Martin, detailing the allegations against Cook. According to Pulte, “In April 2021, Cook applied for a 15-year mortgage for (the Cambridge) condo and represented it as her ‘Second Home’. Only eight months later, on December 1, 2021, Cook signed a document on a U.S. Government ethics form stating that the property was an ‘Investment/Rental Property.’” He added, “Yet in subsequent filings from 2022 to 2025, Cook has consistently listed the property as an Investment/Rental Property, rather than a Second Home. Representing the property as a Second Home may have allowed Cook to obtain a lower ‘Second Home’ mortgage down payment and interest rate, as investment properties typically require higher down payments and higher interest rates due to increased risk.” The referral implicitly follows arguments that Trump does not have the authority to lawfully remove Cook “for cause” from the Fed Board, because Pulte’s first criminal referral involved alleged conduct that occurred before Cook joined the Fed. Earlier, Cook sued Trump, asking a federal judge in Washington D.C. to block the President from ousting her from the Fed, an unprecedented move. In a letter sent earlier this week notifying Cook that she would be fired, Trump cited Pulte's first criminal referral against Cook, which concerned alleged false statements on mortgage applications for two properties. Pulte, whom Trump appointed to lead FHFA, has appeared to serve as Trump's "attack dog" in recent weeks, assailing the Fed, its Chair Jerome Powell, as well as Cook. Trump has long called for the Fed to lower interest rates but has thus far been unsuccessful. Prior to announcing his intention to fire Cook, Trump seriously considered trying to fire Powell. Pulte previously stated that Cook signed mortgage documents for properties in Michigan and Georgia, claiming each one as her primary residence “in hopes of obtaining lower interest rates and more favorable loan terms.” His earlier allegations led to a DOJ criminal investigation into Cook, who is the first Black woman to serve as a Fed governor. ### **Mortgage-Related Risk Analysis** It's important to note that obtaining a mortgage based on inaccurate or misleading information can have serious consequences. These consequences may include: * **Criminal Charges:** Providing false information on a mortgage application can lead to criminal charges, such as fraud. * **Civil Lawsuits:** Financial institutions may file civil lawsuits to recover losses resulting from misleading information. * **Loss of Property:** If you are unable to repay the mortgage, the property may be foreclosed and sold. ### **The Importance of Transparency and Disclosure** Transparency and full disclosure of relevant information are critical when applying for a mortgage. Applicants should ensure that all information provided is accurate and complete to avoid any potential problems in the future.