Trump's Bid to Remove Fed Governor Over Mortgage Allegations Challenged

President Donald Trump's bid to remove Federal Reserve Governor Lisa Cook from her position has been challenged by her attorney, Abbe David Lowell. The challenge comes in response to a notice from Deputy Chief of Staff Dan Scavino stating that the President is considering removing Cook for 'cause'.

The notice relies on unproven criminal allegations laid out in an August 2025 referral to the Department of Justice by Federal Housing Finance Agency (FHFA) Director Bill Pulte. The referral claims Cook improperly obtained 'primary residence' mortgages on more than one property and failed to disclose rental income.

Cook's attorney, Abbe David Lowell, argues that there is no legally cognizable cause for removing her from the Federal Reserve Board. He claims that Cook had lived and worked in Michigan for over 15 years as a tenured professor at Michigan State University and that she initially used a lender's website to seek information about a 'vacation home' mortgage.

The notice also points out that Cook took out two loans in 2021, one on a home in Ann Arbor, Michigan, and one on a condominium in Atlanta. However, Lowell claims that this was an inadvertent paperwork error, not an intentional misrepresentation. He further argues that the Atlanta mortgage was never sold to Fannie or Freddie, so the FHFA seller and servicer guidelines cited in the referral do not govern the loan.

The White House did not immediately respond to HousingWire's request for comment. Cook's attorney is prepared to challenge any illegal attempt to remove her from her position if necessary.