Fed Governor Mortgage Fraud: A Shocking Oversight

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A lawyer for a Federal Reserve governor who has been accused of mortgage fraud says it was all an “oversight” and she shouldn’t be held responsible for her “inadvertent” actions.

The situation is that Lisa Cook, who wasn’t fired earlier by President Donald Trump because the Supreme Court said she needed to be given notice and have an opportunity to respond to the allegations, had a “primary” residence” in Michigan, and it was designated as such.

Then she obtained a home of Florida, and also designated that as her “primary” residence.

That designation often provides for lower interest rates on mortgages.

A year ago William Pulte, heading the Federal Housing Finance Agency, sent two criminal referrals regarding Cook to the Department of Justice on those allegations, before the Supreme Court said Cook “was entitled to notice and some opportunity to respond.”

Then this month White House Deputy Chief of Staff Dan Scavino notified Cook Trump was “considering” her dismissal and allowed her to respond.

A lawyer for Cook now has explained it was just a mistake and Cook shouldn’t be held responsible.

The lawyer, Abbe Lowell, who often has worked on cases opposing President Trump, confirmed when Cook in 2021 signed a mortgage agreed on an Atlanta property, which is designated as her “primary” residence, it was “an entirely inadvertent oversight.”

He alleged there was no “intentional misconduct and zero intent to defraud or mislead.”

That’s even though she already had listed her home in Michigan as her “primary” residence.

According to a report at ScotusBlog, her lawyer said because she made a mistake she therefore cannot be held liable under charges that are “unfounded and untrue.”

In fact, Abbe claimed that holding her responsible for her admitted actions would be “corrosive of the independence that Congress sought to preserve” for the Federal Reserve Bank, which makes decisions that affect the interest rates for Americans all the time.

Abbe explained Cook had gone to a lender’s website looking for information about a mortgage for a vacation home, and that, Abbe alleges, was “a clear indication of the loan type she was looking to acquire.”

He claimed the lender “knew” all along she didn’t intent to have her Atlanta home as a “primary” residence, even though that’s what she signed.

He also fought back against the evidence from her decision to offer it for rent indicating it was not her primary residence.

Further Abbe claimed President Trump had multiple “primary” residences.

WND reported the letter to Cook had said, “Pursuant to the Supreme Court’s opinion from June 29, 2026, you are hereby provided notice that the President is considering removing you from your position on the Board of Governors of the Federal Reserve due to there being sufficient reason to believe that you made false statements on one or more mortgage agreements.”

It added, “”The president has reviewed the allegations in the Criminal Referral, and believes there is reason to believe you may have made false statements on one or more mortgage agreements.”

Trump said Cook’s actions, if documented, could undermine public trust in the Federal Reserve, which after all sets the interest rates that impact mortgages for millions and millions of homeowners across the nation.

The post 'Inadvertent'? Lawyer for Fed governor accused of mortgage fraud says it was all an 'oversight' appeared first on Insurance News | InsuranceNewsNet.

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