ProPublica: Trump cabinet members Lori Chavez-DeRemer, Sean Duffy, and Lee Zeldin hold multiple primary-residence mortgages amid fraud crackdown

ProPublica: Trump cabinet members Lori Chavez-DeRemer, Sean Duffy, and Lee Zeldin hold multiple primary-residence mortgages amid fraud crackdown

In a series of recent developments, three Trump cabinet members have found themselves under scrutiny for holding multiple primary-residence mortgages amidst a crackdown on mortgage fraud. Lori Chavez-DeRemer, Sean Duffy, and Lee Zeldin, all prominent figures in the Trump administration, are facing allegations that they listed more than one property as a primary residence when applying for mortgages, potentially to secure lower interest rates [2].

The U.S. Justice Department has launched a criminal mortgage fraud probe into these officials, with grand jury subpoenas issued in both Georgia and Michigan. The investigation, led by Ed Martin, a special assistant U.S. attorney, is examining whether these officials committed fraud by misrepresenting their properties' status on mortgage applications [2].

The case has significant ramifications for the Federal Reserve's independence and its ability to set interest rate policy without political interference. The Fed, led by Governor Lisa Cook, has been under pressure from the Trump administration to cut interest rates more aggressively. Cook, who is the first Black woman to serve as a Fed governor, has been targeted by Trump for her opposition to his policies and has filed a lawsuit challenging her unprecedented removal [1].

Mortgages obtained for primary residences typically come with cheaper financing than those for investment properties. Cook's mortgages were higher than national averages at the time, but it remains unclear when she locked in her rates. The investigation into Cook and the cabinet members is part of a broader effort by the Justice Department to pursue criminal probes into mortgage fraud allegations involving public officials [2].

The case is expected to end up before the U.S. Supreme Court, potentially setting a precedent for the Fed's independence and the legal authority of the president to remove governors. The Trump administration has been vocal in its criticism of the Fed's monetary policy, with Trump demanding more aggressive rate cuts.

References:
[1] https://www.yahoo.com/news/articles/fed-governor-cook-says-mortgage-224238113.html
[2] https://www.yahoo.com/news/articles/doj-issues-subpoenas-part-probe-142144793.html