"The investigation originated from two criminal referrals sent by Federal Housing Finance Agency (FHFA) Director Bill Pulte to Attorney General Pam Bondi. These referrals prompted President Donald Trump to attempt to dismiss Cook for cause on Aug. 25. Pulte alleges that in 2021, Cook purchased homes in Michigan and Georgia but claimed they would serve as primary residences in order to qualify for lower interest rates and reduced down payments, when in fact they were intended as investment properties."
"A second referral centers on a $361,000, 15-year loan Cook obtained in April 2021 to buy a Massachusetts condominium, which she listed as a second home. Pulte contends she later reported rental income from the property, suggesting it was being used as an investment. Cook responded by filing a lawsuit on Aug. 28 in federal court in Washington, D.C., naming Fed Chair Jerome Powell and the Board of Governors as defendants since they would be responsible for carrying out a dismissal."
"Cook responded by filing a lawsuit on Aug. 28 in federal court in Washington, D.C., naming Fed Chair Jerome Powell and the Board of Governors as defendants since they would be responsible for carrying out a dismissal. In the suit, Cook a Biden-era appointee argues her removal would subvert the Federal Reserve Act, which requires a clear showing of cause to remove a governor. Her attorney, Abbe David Lowell, wrote in the filing that the attempt is based on unsubstantiated allegations about private mortgage applications submitted by Governor Cook prior to her Senate confirmation."
Two criminal referrals from FHFA Director Bill Pulte to Attorney General Pam Bondi allege Governor Cook misrepresented residence status on mortgage applications. The referrals say Cook purchased homes in Michigan and Georgia in 2021 but claimed primary residence status to obtain lower rates and reduced down payments despite intending them as investments. A second referral involves a $361,000, 15-year loan for a Massachusetts condominium listed as a second home while later reporting rental income. President Trump sought Cook’s removal on Aug. 25, and Cook filed suit on Aug. 28 arguing removal would violate the Federal Reserve Act; counsel called the allegations unsubstantiated.
Read at www.housingwire.com
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