Will Lisa Cook Remain on the Fed Board? WSJ Reports on Documents Refuting Fraud Allegations

Atlanta Condo Purchased with Loan
Listed as "Vacation" Use, Not Rental
Trump: "Obtained Residential Loan, Then Rented It Out" and Dismissed Cook

As President Donald Trump attempts to dismiss Federal Reserve Board member Lisa Cook over allegations of mortgage fraud, reports have emerged of loan documents that contradict these accusations.

The Wall Street Journal (WSJ) reported on the 14th (local time) that, upon reviewing a loan estimate dated May 28, 2021, from Bankfund Credit Union, it was found that Cook had listed the intended use of a condominium in Atlanta, which she planned to purchase with the loan, as "vacation."

In a document Cook submitted to the federal government in December 2021 for a background check prior to her appointment to the Federal Reserve Board, the intended use of the Atlanta condominium was also described as a "second home."

The WSJ explained that these documents serve as evidence suggesting that lenders and related parties may have been aware that Cook did not intend to use the purchased property as her primary residence.

On the 25th of last month, President Trump announced the immediate dismissal of Cook from the Federal Reserve Board, citing suspicions that she committed mortgage fraud during the loan process.

Previously, the Federal Housing Finance Agency (FHFA) sent a letter to Attorney General Pam Bondi, stating that while Cook had declared "residential use" as the purpose for loans to purchase two homes, she allegedly committed mortgage fraud by renting out one of them.

The WSJ explained that listing a property as a primary residence when applying for a mortgage can help secure a lower interest rate.

Following President Trump's dismissal of Cook, the Department of Justice launched an investigation into the matter.