Federal Reserve Governor Lisa Cook has been referred to the Department of Justice (DOJ) for alleged mortgage fraud, according to a letter shared on social media Wednesday by Bill Pulte, director of the Federal Housing Finance Agency (FHFA).
The letter, sent to DOJ officials by Pulte on Aug. 15., alleges that Cook committed mortgage fraud by claiming two homes as her primary residence to potentially obtain more favorable mortgage rates. She then allegedly received investment income by renting out one of the properties, the letter claims.
The letter reveal was part of a flurry of early-morning social media activity by Pulte, who fired off more than a dozen posts on X about Cook. In one, he called for her immediate resignation. In another, he stated his belief that President Donald Trump “has cause to fire Lisa Cook.”
Trump posted on Truth Social about the matter shortly thereafter, writing: “Cook must resign, now!!!”
The president had previously called for Fed Chair Jerome Powell to resign, both over his handling of U.S. monetary policy and what Trump claims is the central banker’s mismanagement of a $2.5 billion renovation of the Fed’s headquarters.
Pulte elaborated on the allegations against Cook during a phone interview with CNBC, saying the FHFA, which oversees mortgage giants Fannie Mae and Freddie Mac, received a tip that led to the agency probe of Cook.
Pressed by CNBC journalists on whether there was political motivation to remove Cook from office, Pulte responded that the DOJ referral was based solely on the information provided in loan documents reviewed by the FHFA.
“We will look at any allegation of mortgage fraud, and we do not care whether you’re a Republican [or] a Democrat. We do not care whether you’re wealthy, we don’t care whether you’re a prosecutor, we don’t care whether you’re a Fed governor,” Pulte said. “If you commit mortgage fraud and you present an existential threat to the Federal Home Loan Banks, Fannie or Freddie, we are going to prosecute it. Period.”
A Federal Reserve spokesperson declined to provide immediate comment.
Cook was nominated to fill an unexpired term on the Fed’s Board of Governors by President Joe Biden in 2022. She was confirmed by the Senate in a party-line vote following a contentious committee process in which some Senate Republicans accused her of being “hyper-partisan.” She was reappointed to the Fed board in 2023 for a 14-year term.
