Overview

• The Justice Department opened investigations into Fed Governor Lisa Cook, New York Attorney General Letitia James and Senator Adam Schiff after referrals from FHFA Director William Pulte, according to documents and a source cited by Reuters.
• A Reuters review of more than 600 federal false-statement cases since 2017 found only 20 included primary-residence misstatements and just one was charged as a standalone offense.
• Cook, James and Schiff deny wrongdoing, and legal experts note prosecutors would need to prove borrowers knowingly lied about a home being a primary residence to secure a conviction.
• President Trump moved to terminate Cook over the allegations and she sued to challenge his effort, while a DOJ probe of her has included grand jury subpoenas reported last week.
• Critics call the actions selective enforcement as separate reporting found Pulte’s father and stepmother claimed primary homes in two states; Pulte rejects that view and says referrals target both parties, and DOJ declined comment.