FHFA Director Files Third Property Criminal Referral Against Fed Governor Cook Over $361,000 Mortgage

Federal Housing Finance Agency (FHFA) Director Bill Pulte has sent a new criminal referral to the Department of Justice (DOJ) concerning Federal Reserve Governor Lisa Cook, alleging misrepresentations related to a third property in Massachusetts. This complaint, filed on August 28, 2025, centers on a condominium in Cambridge and intensifies the scrutiny on Governor Cook amid a broader legal battle over her position. The news was first reported by The Kobeissi Letter on social media.

The referral details specific allegations regarding a $361,000 mortgage for a Cambridge, Massachusetts, condominium. According to The Kobeissi Letter, the complaint alleges:

"Cook took out a mortgage on a condo in Massachusetts for $361,000, claiming the property was a second home. @Pulte alleges that 8 months later, Cook declared that she had earned between $15,000-$50,000 in rental income and declared it an investment property." Mortgages for second homes typically offer more favorable terms and lower interest rates compared to investment properties, which are considered riskier.

This complaint follows earlier criminal referrals from Pulte regarding two other properties owned by Governor Cook, one in Michigan and another in Georgia. In those instances, Pulte alleged that Cook claimed both residences as her primary home simultaneously to obtain advantageous loan terms. This series of referrals suggests a pattern of alleged discrepancies in her mortgage and ethics disclosures.

Governor Cook's attorney, Abbe Lowell, has vehemently denied the allegations, characterizing them as an "obvious smear campaign" by a "political operative." Lowell stated that the claims are "vague, unsubstantiated," and hold no relevance to Governor Cook's role at the Federal Reserve. Cook has also filed a lawsuit challenging President Donald Trump's attempt to remove her from the Fed board, arguing that no legal "cause" for dismissal exists.

FHFA Director Pulte, a Trump appointee, has been a vocal critic of the Federal Reserve's monetary policy, particularly its stance on interest rates. His actions are seen by some as part of a broader effort to exert political pressure on the central bank and its independence. The DOJ is reportedly investigating the referrals, with Special Attorney Ed Martin leading the probe into these and other politically charged allegations.

Legal experts note that proving mortgage fraud requires demonstrating intent to deceive lenders. While the allegations highlight discrepancies, some analyses suggest that the mortgage rates Cook obtained were not unusually low, potentially indicating that lenders were aware of the property's true nature. The ongoing legal and investigative processes will determine the validity and implications of these serious claims for Governor Cook and the Federal Reserve's independence.