Trump Administration Intensifies Mortgage Fraud Probes Against Political Opponents, Targeting Fed Governor Cook and NY AG James

Washington D.C. – The Trump administration has escalated its scrutiny of prominent Democratic figures, launching federal mortgage fraud investigations against Federal Reserve Governor Lisa Cook and New York Attorney General Letitia James. These probes, spearheaded by Federal Housing Finance Agency (FHFA) Director William Pulte, allege financial improprieties related to property ownership and mortgage applications, drawing strong denials from both officials who characterize the actions as politically motivated.

Federal Reserve Governor Lisa Cook is accused of claiming two different homes as her primary residence within weeks in 2021, one in Ann Arbor, Michigan, and another in Atlanta, Georgia. FHFA Director William Pulte publicly stated that Cook designated her out-of-state condo as her primary residence just two weeks after taking a loan on her Michigan home, which she also declared as her primary residence. Pulte has referred the matter to the Justice Department for a criminal investigation, further alleging that the Atlanta property was later listed for rent without reported income in federal disclosures.

President Donald Trump has vocally called for Cook's resignation, stating on his social media platform, "Cook must resign, now!!!" Cook, the first Black woman to serve on the Fed's Board of Governors, firmly rejected these demands. "I have no intention of being bullied to step down from my position because of some questions raised in a tweet," Cook said in a statement, adding that she is gathering accurate information to address any legitimate questions.

Separately, New York Attorney General Letitia James faces allegations that she misrepresented a five-unit Brooklyn property as a four-unit dwelling on mortgage documents. This alleged misclassification could have allowed her to qualify for more favorable loan terms typically available for smaller multi-family homes. The tweet by Sam E. Antar highlights this, stating, "Letitia James signed mortgage docs calling her 5-unit Brooklyn property a 4-unit. Both are classic mortgage fraud."

James's attorney, Abbe Lowell, has dismissed the accusations as politically motivated, asserting that the 24-year-old certificate of occupancy for the Brooklyn property mistakenly listed it as five units, while it has functioned as a four-unit residence. James herself has stated, "The allegations are baseless. The allegations are nothing more than a revenge tour." These investigations follow James's successful civil fraud case against Trump and his company, which resulted in a significant judgment.

The investigations into Cook and James, alongside a similar probe into Senator Adam Schiff, are being led by FHFA Director William Pulte, a Trump appointee. Pulte insists his actions are apolitical, stating, "We will look at any allegation of mortgage fraud. And we do not care whether you’re a Republican, a Democrat." Critics, however, view these actions as a concerted effort by the Trump administration to target political adversaries through federal agencies.