Federal Housing Finance Agency Director Bill Pulte referred Federal Reserve Governor Cook to the DOJ, alleging falsified bank documents and property records to secure more favorable mortgage terms and potentially commit criminal mortgage fraud. Pulte alleged Cook claimed a Michigan property as her principal residence, then took a loan on an Atlanta condo also described as her principal residence and later listed that condo as a rental in 2022. President Trump called for Cook's resignation while seeking central bank leadership aligned with his preference for interest rate cuts. Cook was appointed to the Fed Board in 2022 with a term through 2038 and is viewed as relatively dovish. A LoanLogics report found about 11.5% of mortgage loan files contain errors or missing information, distinguishing paperwork errors from alleged fraud.
Pulte alleged that Cook took out a mortgage on a property in Michigan, which she represented as her principal residence - and shortly after, took out a loan on a condo in Atlanta that was also described as her principal residence. He further alleged she listed the condo as a rental property in 2022. Trump subsequently called for her resignation. It comes as the president has sought leadership of the central bank that will be more responsive to his rate-cutting instincts.
Context: Mortgage fraud is defined as a material misstatement, misrepresentation or omission related to a mortgage loan. But it is not the same as making a paperwork error in a mortgage document. A recent LoanLogics report found that around 11.5% of all U.S. mortgage loan file content contained errors or missing information over the past decade.
Federal Housing Finance Agency Director Bill Pulte, a Trump ally, referred Cook to the DOJ over allegations she "falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statutes."
Collection
[
|
...
]