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4h ago

Trump Moves to Remove Fed Governor Lisa Cook Over Owner‑Occupancy Allegations

Experts say proving owner‑occupancy fraud requires intent, with few recent federal cases.

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Knowingly making a false statement on a loan application for a mortgage that is connected in any way to a federal institution may be prosecuted as a felony.
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Overview

  • Trump announced on Truth Social that he is removing Lisa Cook from the Federal Reserve Board, citing mortgage‑fraud allegations.
  • FHFA Director Bill Pulte alleged Cook claimed two homes in Michigan and Georgia as primary residences on 2021 mortgage applications.
  • Cook’s attorney said she will file a lawsuit challenging the removal on the grounds that the president lacks authority to oust a Fed governor.
  • Legal scholars note prosecutors must prove specific intent to deceive in owner‑occupancy cases, which are often detected long after origination.
  • A 2023 Philadelphia Fed study flagged more than 22,000 misrepresented owner‑occupancy cases, while federal data show only 38 mortgage‑fraud sentences in FY2024, and recent probes have also scrutinized Letitia James and Adam Schiff.