Federal Reserve Governor Lisa Cook's legal dispute with former President Donald Trump has significantly focused on three home loans she acquired prior to her appointment to the nation's central bank. These mortgages, linked to properties in Michigan, Georgia, and Massachusetts, have drawn attention due to questions surrounding whether Cook accurately represented the intended use of the homes—specifically, if they were designated as primary residences. Trump cited these allegations as grounds for her removal from the Federal Reserve Board of Governors.
Judicial Challenge and Investigation
The Supreme Court ultimately decided by a 5-4 vote that Governor Cook could retain her role while her separate lawsuit, which challenges her attempted dismissal, proceeds through the legal system. Cook initiated her federal court action on August 28, contending that Trump's effort to oust her was unlawful and undermined the Federal Reserve's crucial independence. Her lawsuit, however, did not address the specific accusations that she had listed two properties as primary residences on various mortgage documents.
These allegations originated with Bill Pulte, an individual appointed by the Trump administration who currently oversees the federal agency responsible for regulating Fannie Mae and Freddie Mac. Pulte, now serving as the acting Director of National Intelligence, connected Cook to the three properties in referrals he submitted to the Department of Justice. The Justice Department subsequently confirmed it had launched a criminal investigation into claims of mortgage application fraud related to these matters. The mortgages at the center of the Justice Department's inquiry were all issued in 2021, predating Cook's nomination to the Federal Reserve Board by then-President Joe Biden.
The Mortgages Under Scrutiny
A key aspect of the investigation revolves around the favorable terms often associated with primary-residence loans. Lenders typically perceive these types of mortgages as carrying less risk compared to those for vacation homes or investment properties, leading to more advantageous rates and conditions for borrowers.
Governor Cook disclosed all three mortgages in a financial filing submitted to the U.S. Office of Government Ethics in June 2025. This filing detailed the loans alongside her other financial holdings, including income, retirement accounts, and various investments. The same document also indicated that Cook generated more than $50,000 annually in rental income from her condominium located in Cambridge, Massachusetts. Pulte, in his referral to the Justice Department, alleged that Cook had characterized this Cambridge condominium as a second home rather than an investment property, despite her reporting substantial rental earnings from the unit.
Cook initially purchased the Cambridge condo in 2002 while she was a professor at Harvard University. For this property, she secured a 15-year loan of $361,000 at a 2.5% interest rate in April 2021.
Two months later, in June 2021, Cook obtained a mortgage for a three-bedroom residence in Ann Arbor, Michigan. This 15-year loan, totaling $203,000 with an interest rate of 2.87%, was issued through the University of Michigan Credit Union and covered the 1,800-square-foot property. At that time, Cook was teaching economics and international relations at Michigan State University, which is approximately an hour's drive from Ann Arbor.
Additionally, she secured a 30-year mortgage for $540,000 for a luxury condominium situated above the Four Seasons Hotel in Atlanta, Georgia. This loan, provided by the Bank Fund Staff Federal Credit Union, carried an interest rate of 3.25%. According to Pulte's referral letter to the Justice Department, the loan agreement for the Atlanta property stated that Cook:
affirmed that this property would serve as her primary residence within 60 days of the execution of the mortgage and would serve as her primary residence for a full year.
Governor Cook has not publicly offered an explanation regarding why both the Michigan and Georgia properties were simultaneously designated as her primary residences. Her attorney, Abbe Lowell, vehemently denied the accusations in a filing dated September 2, asserting that Cook “did not ever commit mortgage fraud.”
