Trump Targets Federal Reserve Governor Over Mortgage Fraud Allegations
Federal Reserve governor Lisa Cook has responded to renewed threats from the White House to fire her over allegations of mortgage fraud. The Trump administration claims that Cook committed the offense by declaring two homes as 'primary residences' in mortgage applications, which can sometimes receive lower mortgage rates or down payments than second homes.
Cook denies the charge and says any errors were unintentional and did not rise to a level that justified her firing. Her attorneys argue that there is no legal basis for President Trump to remove her from the central bank's governing board, citing a Supreme Court ruling that allowed Cook to remain in her position while the case is litigated.
The Trump administration has accused Cook of trying to deceive lenders by referring to one of the homes as a 'vacation home' and not seeking to lower mortgage rates or down payments. However, Cook says this was an honest mistake and did not intend to mislead anyone.