In her most specific rebuttal to date, Federal Reserve Governor Lisa Cook vigorously denied accusations of mortgage fraud in a formal response to the Trump administration, saying attempts to fire her “would ignore the facts and the law.”

A letter sent by Cook’s legal representation on Wednesday to White House Counsel David Warrington contends that the central banker “has never committed mortgage fraud or any intentional wrongdoing, and there is no legally cognizable cause for removing her from the Federal Reserve Board.”

On Aug. 5, the administration signaled its intention to move forward with attempting to fire Cook, writing in a letter signed by Dan Scavino, the White House’s deputy chief of staff, that the unproven allegations of mortgage fraud “appears to demonstrate a level of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.” It added that President Donald Trump had determined the allegations provided “reason to believe they constitute cause to remove you from your position.”

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Trump first attempted to unseat Cook in August 2025, following a criminal referral to the Department of Justice from Bill Pulte, director of the Federal Housing Finance Agency (FHFA), which regulates government-sponsored mortgage investors Fannie Mae and Freddie Mac.

A series of legal setbacks for the administration in lower courts allowed Cook to remain on the Fed’s board, culminating in a 5-4 ruling by the Supreme Court in June that again blocked her removal.

But the majority decision penned by Chief Justice John Roberts — which didn’t address the mortgage fraud allegations, only the attempted firing — left open the possibility for the administration to renew the termination process.

“Only after Cook has had the opportunity to respond to the charges made against her may a final decision be made,” Roberts wrote. “And only then can the courts assess the validity and sufficiency of such charges.”

Residency questions

Pulte’s DOJ referral alleged Cook committed fraud by claiming homes in both Michigan and Atlanta as her primary residence to potentially obtain a lower mortgage rate on the second purchase.

During a phone interview with CNBC that aired shortly after Pulte revealed the existence of the criminal probe in a social media post, he said the FHFA had received a tip that led the agency to examine Cook’s real estate transactions. He did not reveal the source of the purported tip.

In Wednesday’s response to the White House, Cook’s attorneys acknowledged she signed a mortgage agreement for an Atlanta condominium classifying it as her primary residence, despite already having a mortgage on her home in Ann Arbor, Mich. But they characterized it as a clerical error, stating that Cook gave no indication to her lender that she was planning to vacate her Michigan residence.

“All the information Governor Cook provided concerning her Michigan residence and employment indicated that she did not intend to make her Atlanta condominium her principal residence,” the letter states, “and that her signing a form to the contrary was an inadvertent oversight, not an intentional act of wrongdoing, let alone a violation of criminal law.”

The White House’s Aug. 5 letter stated Trump had personally reviewed the allegations in the criminal referral and “believes it is inconceivable that you were not aware of your first commitment when making the second and impossible that you intended to honor both.”

It claimed Cook’s actions “may be sufficient to demonstrate that you committed a crime, as you appear to have acquired mortgages that do not meet certain lending requirements and could have received favorable loan terms under fraudulent circumstances.”

Cook’s response contained an appended declaration by Kathleen Engel, a research professor of law at Suffolk University Law School in Boston. She noted the mortgage documents signed by Cook for the Michigan and Atlanta properties contained “boilerplate language” that did not indicate more favorable loan terms depending on residency status.

“The assertions in the Pulte Referral and Scavino Letter that the two loans ‘could have received favorable loan terms’ or that the two loans benefited Dr. Cook by lowering interest rates cannot be established by the two security instruments,” Engel stated.

Next steps

The White House had given the Fed governor 21 days to respond to the allegations. With the response in hand on Day 21, the administration must now decide how to proceed.

The White House did not immediately respond to a request for comment Wednesday.

In a statement provided to Scotsman Guide, Cook’s attorneys, Abbe Lowell of Lowell & Associates and Norm Eisen of Democracy Defenders Fund, contended there was no legal basis to remove Cook from office for cause.

“An inadvertent error is not fraud, as the President and a third of his cabinet should know because they reportedly did the same thing,” they stated. “These attacks on Governor Cook are not about real estate paperwork; they are an attempt by President Trump to force the Federal Reserve to bend to his will.”

The statement concluded: “Our response should put this matter to rest once and for all, but, if necessary and in keeping with the Supreme Court’s ruling, we are prepared to challenge any illegal attempt to remove Governor Cook.”