White House revives year-old mortgage fraud claims against Federal Reserve Governor Lisa Cook
The Trump administration has relaunched its effort to remove Federal Reserve Governor Lisa Cook, sending her a formal notice this week that resurrects the same mortgage fraud allegations she has denied since the dispute began nearly a year ago.
White House aide Dan Scavino, Trump's deputy chief of staff and director of the Office of Presidential Personnel, sent a letter to Cook on Wednesday stating that the president is "considering removing you from your position."
The letter, sent "pursuant to the Supreme Court's opinion," instructs Cook to submit a written explanation of the allegations, along with supporting evidence, by August 26.
The move arrives six weeks after the Supreme Court's 5-4 ruling that blocked Cook's immediate dismissal.
Chief Justice John Roberts noted in a footnote that nothing in the opinion prevented Trump from "trying again," provided Cook receives proper notice and a meaningful opportunity to contest the allegations.
The Federal Reserve declined to comment on the White House's letter.
Primary residence declarations under scrutiny
The fraud allegations center on mortgage applications Cook signed before joining the Fed's Board of Governors. In a June 2021 application to refinance a property in Ann Arbor, Michigan, Cook listed it as her primary residence. One month later, she purchased a condominium in Atlanta, Georgia, and a July 2021 document also referred to it as her primary residence.
Borrowers who designate a property as a primary residence can qualify for lower mortgage rates and smaller down payments than buyers of a second or vacation home.
The charges were first surfaced by Bill Pulte, director of the Federal Housing Finance Agency (FHFA), who submitted a criminal referral to the Justice Department last August. That's the same referral that triggered Trump's original effort to oust Cook from the central bank.
Pulte has leveled similar mortgage-related allegations against New York Attorney General Letitia James.
Cook's attorney, Abbe Lowell, rejected the renewed push in a statement.
"These allegations are as baseless now as they were a year ago when President Trump tried to remove Governor Cook and interfere with the independence of the Federal Reserve," Lowell said.
"No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent — there is no valid cause for removing Governor Cook. As we did before, we will challenge this latest pretext and preserve her position and the historic role of the Fed."
Rate politics shadow the legal fight
Trump's campaign to remove Cook has run in parallel with sustained pressure on the Fed to cut interest rates. Cook, appointed by former President Joe Biden and the first Black woman to serve as a Fed governor, sits on the 12-member Federal Open Market Committee, which sets the benchmark rate that directly shapes borrowing costs for mortgage professionals and their clients nationwide.
The broader question of what Federal Reserve independence means for market stability has been a recurring concern for mortgage professionals throughout 2026, as the 30-year fixed-rate mortgage has remained above 6% for most of the year, according to Freddie Mac data.
Cook's case now returns to lower courts for a determination on whether the mortgage allegations meet the legal standard required for removal under the Federal Reserve Act.
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