A panel of White House appointees will convene a formal hearing on alleged false mortgage statements before the November midterms
President Donald Trump on Friday formally established a committee of inquiry to investigate Federal Reserve Governor Lisa D. Cook, a Biden appointee, over allegations that she made false statements on one or more mortgage documents.
This is the administration’s most structured move yet in a months-long campaign to remove her from the central bank’s board.
The three-member committee is composed entirely of Trump administration officials:
- Kevin Hassett, director of the National Economic Council
- Keith Sonderling, serving simultaneously as Labor Secretary and acting director of the Office of Government Ethics
- Andrea Lucas, chair of the Equal Employment Opportunity Commission
A presidential memorandum addressed to Attorney General Todd Blanche, Washington, DC, directs the panel to hold a four-hour, closed hearing at the White House on November 5, two days after the midterm election.
Trump was blunt about his rationale. “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,” he wrote in the memorandum.
The action follows the Supreme Court’s 5-4 ruling in June in Trump v. Cook, 146 S. Ct. 2234, which blocked the president’s first removal attempt on due process grounds but preserved the possibility of a second bid.
Under the Federal Reserve Act (12 U.S.C. 242), a governor may be dismissed only “for cause,” defined broadly as proven misconduct or neglect while in office.
The Department of Justice’s probe into then-Chair Jerome Powell threatened the Fed’s political independence and rate-setting credibility, and Justice Brett Kavanaugh previously warned that Trump’s position on firing Cook could shatter the Federal Reserve’s long-standing independence.
Mortgage allegations and Cook’s response
The underlying claims center on two properties Cook financed in 2021, prior to her Senate confirmation.
Federal Housing Finance Agency (FHFA) Director Bill Pulte alleged that Cook took a $203,000, 15-year mortgage on an Ann Arbor, Michigan property and a separate $540,000, 30-year loan on a Georgia home within weeks of each other — declaring both as her primary residence, a potential breach of standard occupancy terms.
No criminal charges have been filed. Cook has consistently denied wrongdoing.
Cook’s attorneys, Abbe Lowell and Norm Eisen, confirmed their client would attend but questioned the process.
“In light of the President’s repeated statements that he has already decided to fire Governor Cook — regardless of the facts and evidence — we have grave doubts that this ‘hearing’ is a legitimate one that would conform to the law,” the attorneys said in a statement.
Cook “welcomes the opportunity to present the facts so she can clear her name,” they added.
Rate policy and what’s at stake for mortgage brokers
At its September 2026 meeting, all 12 Federal Open Market Committee (FOMC) members — including Chair Kevin Warsh, who assumed the role in May following Jerome Powell’s departure — voted to raise rates for the first time in three years.
Trump has since questioned that decision, arguing Warsh is constrained by a board he views as hostile.
Brokers who remained cautiously optimistic about the Fed’s rate pauses and near-term rate trajectory now face renewed uncertainty about the board’s stability and governance.
Sen. Elizabeth Warren, D-Mass., the top-ranking Democrat on the Senate Banking, Housing, and Urban Affairs Committee, dismissed the new panel as “an illegitimate show trial in his dangerous quest to illegally take over our nation’s central bank.”
The committee must submit written findings to the president after the November 5 hearing. Cook may file a post-hearing statement by November 10.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
