Lisa Cook Defends Against Mortgage Fraud Allegations Amid Trump Administration Pressure

Tue Nov 18 2025 02:32:47 GMT+0200 (Eastern European Standard Time)

Federal Reserve Governor Lisa Cook’s legal team disputes claims of mortgage fraud, calling the accusations politically motivated and unfounded amidst efforts by President Trump to remove her from the Fed.

In a formal response to accusations of mortgage fraud, Lisa Cook's attorneys assert that the claims against her are based on misleading interpretations of her mortgage documentation. The accusations, linked to President Trump's attempts to remove her from the Federal Reserve, raise questions about political motives, as Cook was appointed as the first Black woman on the Fed's board. The U.S. Supreme Court has ruled that she can retain her post while her legal battles continue.

WASHINGTON (AP) — In a letter to Attorney General Pam Biondi on Monday, lawyers for Federal Reserve Governor Lisa Cook strongly disputed allegations of mortgage fraud made by an official from the Trump administration.

President Trump has used these accusations as grounds to seek Cook’s termination, marking the first time in the Federal Reserve's 112-year history a president has attempted to remove a governor from the board.

The letter from Cook's attorney, Abbe Lowell, counters a criminal referral issued in August by Bill Pulte, the director of the Federal Housing Finance Agency, who previously voiced similar allegations against several prominent Democrats.

This initiative to dismiss Cook aligns with ongoing tensions between Trump and the Fed concerning interest rate policies. If Cook were to be removed, it would enable Trump to appoint a majority on the Fed’s seven-member board, further consolidating control over monetary policy.

Cook took the legal route to retain her position, and a recent ruling from the Supreme Court allowed her to remain at the Fed while she pursues her fight against the allegations.

In the letter, Cook’s defense emphasizes that the fraud claims rely on a single ambiguous statement in a 2021 mortgage document, which they describe as 'innocuous' when viewed alongside other clear and truthful disclosures about her properties.

Cook's attorney stated, There is no fraud, no intent to deceive, nothing whatsoever criminal or remotely a basis to allege mortgage fraud.” This case not only illustrates scrutiny over her role but also reflects the broader politicization of regulatory bodies under the Trump administration.

Additionally, the accusations against Cook point to a pattern wherein Pulte has selectively targeted Democrats while ignoring similar allegations against Republican figures, raising questions about his motivations.

As the Defense continues to unfold, the implications for Cook's role as a pivotal member of the Federal Reserve remain significant, especially given her historic appointment as the first Black woman on the board under President Biden.