ATLANTA — Federal Reserve Governor Lisa Cook is disputing allegations of mortgage fraud made by a Trump administration official, as President Donald Trump seeks her removal from the Fed’s board.
Cook’s attorneys responded to the allegations in a letter to Attorney General Pam Bondi, arguing that the claims are unfounded and politically motivated.
The accusations were made by Bill Pulte, director of the Federal Housing Finance Agency, who has targeted several Democrats with similar claims.
“There is no fraud, no intent to deceive, nothing whatsoever criminal or remotely a basis to allege mortgage fraud,” wrote Cook’s attorney, Abbe Lowell, in the letter.
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The controversy began when Pulte accused Cook of declaring two homes as her primary residence, which can affect mortgage rates and down payment requirements.
One of those homes is in Atlanta.
Cook’s legal team argues that these declarations were not intended to deceive and were consistent with her living arrangements.
Cook has been allowed to remain in her position while the Supreme Court considers the case, with arguments scheduled for January.
If removed, Trump would have the opportunity to appoint another member to the Fed’s board, potentially shifting its balance.
Pulte’s actions have been criticized as partisan, with Cook’s attorney noting that similar allegations have not been pursued against Republicans.
Pulte has also faced scrutiny for his management of Fannie Mae and Freddie Mac, including allegations of data sharing with competitors.
The outcome of this legal battle could have significant implications for the Federal Reserve’s leadership and the broader political landscape.
As the case progresses, the focus remains on the validity of the allegations and the potential impact on Cook’s career.
Information from the Associated Press used in this story.
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