Fed Governor Lisa Cook Pushes Back as Trump’s Mortgage-Fraud Allegations Unravel

The fight over Federal Reserve Governor Lisa Cook’s future has entered a new phase, with her legal team laying out the first detailed rebuttal to fraud allegations that President Donald Trump used as the basis to attempt her removal.

Until now, Cook had denied wrongdoing without engaging publicly. That changed on Monday, when her lawyer Abbe Lowell sent a sharply worded letter to Attorney General Pam Bondi arguing that the claims, originally raised by FHFA Director William Pulte, “fail on even the most cursory look at the facts.”

Lowell wrote that discrepancies in Cook’s mortgage applications were either accurate at the time or “an inadvertent notation” that cannot constitute fraud, especially given the additional information she disclosed to lenders. The letter, seen by Reuters, argues that neither of Pulte’s criminal referrals offers evidence of intentional deception when Cook secured loans tied to properties in Michigan, Georgia and Massachusetts.

Cook has challenged her firing in court and, for now, the US Supreme Court has frozen Trump’s removal attempt until arguments are heard in January.

The Justice Department offered no clarity. A spokesperson said the department “does not comment on current or prospective litigation, including matters that may be an investigation.”

Lowell, however, went beyond the mortgage paperwork. He accused Pulte of “selectively targeting Trump’s political enemies,” noting that similar allegations against Republican officials have gone unaddressed. He also argued that Pulte’s recent behaviour undermines his own credibility, including the firing of the FHFA’s acting inspector general and several watchdogs at Fannie Mae.

The letter referenced a Reuters report saying the White House moved to oust FHFA acting Inspector General Joe Allen immediately after he attempted to share key discovery files with federal prosecutors in Virginia, documents tied to an indictment against New York Attorney General Letitia James. James faces charges of bank fraud following a Pulte referral; she has pleaded not guilty and is seeking dismissal on grounds that include selective prosecution.

Cook’s case is partly overseen by Ed Martin, the Justice Department’s pardon attorney, who Bondi appointed as a special assistant US attorney to work on mortgage fraud cases involving public officials. The probe remains open, and no criminal charges have been filed. The department is also investigating Democratic Senator Adam Schiff, again following a referral by Pulte.