Lisa Cook Dismissed from Fed Board on Charges of "Mortgage Fraud"
Same Allegations Brought Against New York Attorney General and Senator
There is analysis suggesting that Bill Pulte, the loyalist Director of the Federal Housing Finance Agency (FHFA), is behind the series of political retaliations by U.S. President Donald Trump.
On August 25 (local time), The Washington Post reported that the Trump administration is now targeting political adversaries using “mortgage” (home loan) issues, and described Director Pulte as the administration’s “new weapon.”
On this day, President Trump abruptly dismissed Federal Reserve (Fed) Board Member Lisa Cook, who had been appointed by former President Joe Biden, on charges of “mortgage fraud.”
Director Cook was the first Black woman to serve on the Fed Board. It is almost unprecedented for a president to dismiss a Fed Board member.
Allegations of mortgage fraud are also being applied to Letitia James, Attorney General of New York, and Adam Schiff, Senator from California, both considered political opponents of President Trump. Attorney General James has a history of multiple legal battles against President Trump and the Trump Organization, while Senator Schiff led the impeachment proceedings against President Trump during his first term.
All of these individuals share the commonality of facing Justice Department investigations after Director Pulte of the FHFA, which supervises the mortgage market, raised suspicions of fraud. Since taking office in March this year, Director Pulte has maintained a constant presence on social media, frequently posting and attacking the Fed and its Chair Jerome Powell.
Director Cook and others are suspected of obtaining low-interest mortgage loans, available for residential purposes, when purchasing homes, and then renting out those properties instead.
Regarding this, The Washington Post stated, “It is unclear how Director Pulte began investigating the documents submitted by President Trump’s political opponents at the time of their mortgage applications,” adding, “Shortly after taking office, he reorganized the boards of two major mortgage companies under FHFA oversight and assumed the position of board chair himself.” As the head of the FHFA and chair of the mortgage companies’ boards, he reportedly had access to vast amounts of personal data.
Currently, Director Cook is refusing to resign, arguing there is no legal basis for her dismissal, while Attorney General James contends that there was only a clerical error in the paperwork. Senator Schiff maintains that no illegal activity occurred.
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