Federal Reserve Governor Lisa Cook referred to a condominium she purchased in June 2021 as a “vacation home” in a loan estimate, in contradiction to claims by the Trump administration that she committed mortgage fraud.
President Donald Trump has sought to fire Cook on the basis of allegations she claimed both the condo and another property as her primary residence simultaneously.
Trump wants to reshape the central bank to orchestrate a steep cut to interest rates.
Documents obtained by The Associated Press showed that on a second form submitted by Cook to gain a security clearance, she described the property as a “second home.”
Cook has sued the Trump administration to block her firing, the first time a president has sought to remove a member of the seven-person board of governors. She secured an injunction on Tuesday that allows her to remain as a Fed governor.
The administration appealed the ruling and asked for an emergency ruling, just before the Fed is set to meet and decide whether to reduce its key interest rate. Most economists expect they will cut the rate by a quarter point.
Bill Pulte, a Trump appointee to the agency that regulates mortgage giants Fannie Mae and Freddie Mac, has accused Cook of signing separate documents in which she allegedly said that both the Atlanta property and a home in Ann Arbor, Michigan, were both “primary residences.” Pulte submitted a criminal referral to the Justice Department, which has opened an investigation.
Claiming a home as a “primary residence” can result in better down payment and mortgage terms than if one of the homes is classified as a vacation home.
Fulton County tax records show Cook has never claimed a homestead exemption on the condo, which allows someone who uses a property as their primary residence to reduce their property taxes, since buying it in 2021.
The White House did not immediately respond to a request for comment.