According to the Trump administration, Sen. Adam Schiff, Fed Governor Lisa Cook, and New York AG Letitia James are facing allegations of mortgage fraud AFP via Getty Images
Trump urged a Biden-appointed member of the Federal Reserve Board of Governors to resign, making him the latest official the administration has accused of mortgage fraud.
The administration of President Donald Trump has launched a new offensive against critics in recent weeks by accusing Democratic officials of mortgage fraud.
The most recent occurred on Wednesday when Trump, who has been a harsh critic of the Fed’s interest rate policies, wrote on his Truth Social platform that Lisa Cook, the governor of the Fed, “must resign, now!!!”
His appointment followed allegations made by Federal Housing Finance Agency director William Pulte, who wrote to Attorney General Pam Bondi, that Cook, who was President Joe Biden’s nominee, “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud.” Cook allegedly fabricated residence statuses for her properties in Atlanta and Ann Arbor, Michigan, according to Pulte’s letter.
Letitia James, the attorney general of New York, successfully sued Trump and his company for what her office claimed were fraudulent misrepresentations of his wealth and financial statements that he used to obtain favorable rates on bank loans and insurance policies that he otherwise would not have been able to obtain. The action came after recent efforts to target Sen. Adam Schiff, D-Calif., who played a key role in Trump’s impeachments. (In the case, a judge gave James’ office more than $300 million, which has since grown to more than $500 million with interest. Trump is appealing the ruling and has referred to the case as “a fraud on me.”
One of the first things opposition researchers do is look for discrepancies in where candidates list their “primary” residences, a Republican campaign veteran told NBC News. For elected officials who divide their time between Washington and their home states, it is a pertinent issue. According to this individual, it is a common problem in both parties’ campaigns, and the punishment is usually a fine rather than jail time.
Sen. Angela Alsobrooks, D-Md., who was running for office at the time, was hit with a $47,000 bill in Washington, D.C., last year after it was found that she had falsely claimed property tax credits on a house she had rented out.
This person remarked, “It looks sloppy.” However, I don’t believe anyone has ever ruined their life over this. It simply didn’t look good.
The Trump administration is now paying particular attention to these accusations made against Democrats.
Sen. Angela Alsobrooks, D-Md., who was running for office at the time, was hit with a $47,000 bill in Washington, D.C., last year after it was found that she had falsely claimed property tax credits on a house she had rented out.
Meanwhile, Texas Attorney General Ken Paxton, a Trump supporter and Senate candidate, and his wife, Angela, misrepresented on mortgage applications that three different properties were each their primary residence, according to The Associated Press. Whether Paxton is being investigated similarly has not been disclosed by the Trump administration.
Abbe Lowell, James’ attorney, brought up the possible discrepancy in enforcement actions in a letter to Martin on Monday.
Notably, Kenneth Paxton, the Republican Attorney General of Texas, is not included in your mandate. Since Mr. Paxton allegedly owns three separate properties that he claims are his “primary residence,” according to the same news reports that raised concerns about Ms. James and Mr. Schiff, it would seem that your title should actually read “Special Assistant for Mortgage Fraud [Alleged Against Democrats Adverse to President Trump],” he wrote.
In a Wednesday interview with CNBC, Pulte stated that political considerations had no bearing on the administration’s investigation into the claims of mortgage fraud.
“Any claim of mortgage fraud will be investigated,” he stated. And it makes no difference to us if you’re a Democrat or a Republican. We do not care whether you’re wealthy. Whether you are a prosecutor or not is irrelevant to us. We will prosecute anyone who commits mortgage fraud and poses an existential threat to the Federal Home Loan Banks, Fannie, or Freddie, regardless of whether they are a Fed governor.
Cook, the first Black woman to serve on the Federal Reserve’s Board of Governors, responded Wednesday after reports surfaced that Pulte had filed a criminal referral against her. She said she only learned of the move through the media and noted it was tied to a mortgage application from four years ago—well before she joined the Fed.
“I will not be pressured into resigning over a tweet,” Cook said. “As a member of the Federal Reserve, I take questions about my financial history seriously. I am working to gather the right information so I can answer legitimate inquiries and provide the facts.”
Later that day, Senator Elizabeth Warren, D-Mass., called the matter another attempt by the Trump administration to strong-arm the Fed.
“I’ve always supported accountability at the Federal Reserve,” Warren said. “But it’s obvious that President Trump has been looking for excuses to intimidate or push out Chair Powell and other Fed board members, rather than take responsibility for his own failed economic policies. The White House should not be using federal power to try to illegally remove independent Fed officials.”
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