Mortgage documents have been at the center of an effort by President Donald Trump to fire Fed Governor Lisa Cook over alleged mortgage fraud, but a loan estimate from 2021, first seen and reported by Reuters on Friday, seems to undermine those allegations.
The loan estimate for an Atlanta condo Cook bought in 2021 shows that Cook declared the property a “vacation home,” not a primary residence, according to Reuters. Homebuyers get more favorable interest rates and tax credits on primary residences, so claiming multiple properties as a primary residence could land borrowers in trouble. But the loan estimate — issued by a lender once a borrower has filled out a loan application — shows that the credit union knew what the property was going to be used for.
Reuters also reported that Cook “never requested a tax exemption for the Georgia home as a primary residence, according to property records and a Fulton County tax official.”
The condo loan estimate contradicts the claim by FHFA Director Bill Pulte in a criminal referral to Attorney General Pam Bondi on Aug. 15 that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Following that referral, President Trump called on Cook to resign and said he would fire her unless she resigned — then sent a letter attempting to fire her after she didn’t resign. Cook has maintained her innocence, suing Trump over his attempt to fire her. She remains on the Federal Reserve board while her lawsuit makes its way through the courts but on Friday Trump requested an emergency ruling in the case.
Trump is hoping to get Cook fired ahead of the Fed meeting taking place Sept. 16-17, where the Fed is expected to vote on interest rate cuts. Trump has called for emergency interest rate cuts throughout 2025 but Fed Chair Jerome Powell has resisted those calls, citing the strength of the economy. Trump has made it clear he would like to fire Powell, but it remains unclear if he is able to do so and so he has focused on the Fed board of governors.
Fed Governor Adriana Kugler resigned her position on Aug. 1, leading Trump to nominate Stephen Miran to fill that vacant seat. Miran could be confirmed by the Senate before the Fed vote takes place this week.
Following a negative jobs report in July and an even worse report in August, experts expect to see a Fed interest rate cut of at least 25 basis points at the meeting this week no matter who is on the board. Mortgage rates — following the 10-year yield — have already hit new year-to-date lows following the latest jobless claims report.
FHFA Director Pulte has come under fire for targeting Cook and other prominent Democrats for mortgage fraud claims, while seeming to ignore the irregular mortgage docs of Trump cabinet members and Pulte’s own family.
Read a full list of articles on this subject: The battle over rates: Trump vs Fed Chair Powell.