Trump opens new front in fight with Fed Gov Cook as he orders probe into alleged mortgage fraud
WASHINGTON, DC: Amid the Trump administration’s continued efforts to release Federal Reserve Governor Lisa Cook from her job over alleged mortgage fraud, the federal government has ordered a renewed inquiry into the case.
The fresh investigation order comes after allegations that Lisa Cook described two of her properties as primary residence to gain mortgage benefits, which Cook denied in a letter written to the White House in late August this year.
Trump orders fresh probe into Lisa Cook's case
President Donald Trump has opened a new front in the Federal Reserve Governor Lisa Cook case, which stretches back over the last year.
Trump on Friday, October 9, established a committee to investigate whether Cook “made false statements in connection with one or more mortgage instruments.”
The investigation team, named the Committee of Inquiry, will hold an in-person hearing next month to hear the allegations and available evidence to back those allegations against her.
“As president, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law,” Trump wrote in a memo.
As per the memo released by the administration, Cook should appear at the hearing and can “present argument, written evidence, and written witness statements regarding the evidence and allegations.”
What is the Lisa Cook case
The Trump administration attempted to fire her in August 2025 after Federal Housing Finance Agency Director Bill Pulte issued a referral stating that Cook illegally described her properties in Georgia and Michigan as her primary residences to get lower mortgage rates.
Cook allegedly failed to report that she was receiving rental income on the Atlanta property on the 2021 mortgage documents.
Trump firing Cook "for cause" based on the mortgage accusations marks the first time a president has tried to oust a sitting Fed governor.
Cook sued, arguing the firing lacked legal cause and due process.
The Supreme Court ruled 5-4 in June that she could stay in her position because she did not receive enough due process to challenge the allegations.
She denied the claims against her and said she erroneously referred to one of two properties as a “vacation home.”
Lisa Cook defended herself against the allegations in a letter written to the White House on August 26, by her lawyer Abbe Lowell, arguing that she has "never committed mortgage fraud."
"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.
