Fed's Lisa Cook fires back at Trump in new letter: 'I never committed mortgage fraud'

WASHINGTON, DC: Federal Reserve Governor Lisa Cook has hit back against President Trump’s efforts to fire her over mortgage fraud allegations leveled by Bill Pulte, former acting director of National Intelligence and director of US federal housing.

President Trump first tried to remove Cook from her post on the Fed's Board of Governors last year after Pulte claimed she falsified mortgage documents related to two properties.

Lisa Cook pushes back against fraud allegation in letter

Lisa Cook defended herself against the allegations in a letter written to the White House on Wednesday, August 26, by her lawyer Abbe Lowell, arguing that she has "never committed mortgage fraud."

In the letter, Lowell said attempting to fire Cook based on Pulte's accusations would "ignore the facts and the law," telling White House counsel David Warrington that the claims against Cook are "unfounded and untrue."

"Governor Cook has never committed mortgage fraud or any intentional wrongdoing, and there is no legally cognizable cause for removing her from the Federal Reserve Board," he wrote.

It is alleged that Cook falsified mortgage documents for two properties bought in Ann Arbor, Michigan, and in Atlanta. Both properties were purchased before Cook was confirmed as a Fed governor during the Biden administration.

SCOTUS allows Lisa Cook to continue after lawsuit

After Cook filed a lawsuit challenging her removal as a violation of federal law, which allows the president to remove Fed governors only "for cause," the Supreme Court allowed her to continue in her role.

Cook continues to serve in her role as her case proceeds in the lower courts.

In a 5-4 decision, the high court held that Cook was entitled to notice and the opportunity to respond to the allegations before she was terminated, which she did not receive.

Weeks after the Supreme Court’s decision, the Trump administration came up with new efforts to remove Cook, as the White House informed her in an August 5 letter that the president was considering firing her because of the mortgage-fraud allegations and laid out the accusations against her.

August 26 was the deadline for Cook to respond to the claims made by Pulte, which is why the letter was written to the White House.

Lisa Cook explains her 'primary residence' mix-up

White House Deputy Chief of Staff Dan Scavino said Cook listed her Atlanta condo as her “primary” home on one mortgage, even though she had also listed her Ann Arbor home as her “primary” residence on another mortgage.

Lowell said Cook's signing of a "primary" mortgage agreement, which was provided to her by her lender, was "an entirely inadvertent oversight."

Cook also "regularly" indicated in submissions that her "primary" residence was in Michigan, and confirmed to her lender that the Atlanta property was a "2nd home," he said. Lowell argued that it was within the lender's discretion to classify the Atlanta mortgage as "primary" or "secondary."

"Governor Cook's apparent mistake on a form provided to her by her lender, which was aware of her other residences, was unintentional, not criminal, and occurred in her private capacity before she took office," Lowell wrote.