Federal Reserve Finds Widespread Mortgage Fraud, Trump Demands Cook's Resignation

The Federal Reserve has found over 22,000 mortgages with similar characteristics to those flagged by Federal Housing Finance Agency Director Bill Pulte in a loan taken by Fed Governor Lisa Cook. The central bank's 2023 report on "fraudulent investors" defined those with more than one owner-occupied home purchase loan within four quarters as fraudulent. The report's data set consists of 584,499 loans made from 2005 to 2017, with the share of those claiming occupancy for better mortgage terms peaking before the 2008 financial crisis.

The Federal Reserve has identified over 22,000 mortgages that share similar characteristics with those flagged by Federal Housing Finance Agency (FHFA) Director Bill Pulte in a loan taken by Fed Governor Lisa Cook. The central bank's 2023 report on "fraudulent investors" defines these loans as those with more than one owner-occupied home purchase loan within four quarters. The report's data set consists of 584,499 loans made from 2005 to 2017, with the share of those claiming occupancy for better mortgage terms peaking before the 2008 financial crisis [1].

In a letter to Attorney General Pam Bondi, Pulte alleged that Cook may have committed mortgage fraud by falsifying bank documents and property records to acquire more favorable loan terms. He cited four criminal statutes for Bondi to investigate for potential charges [2]. The Federal Reserve's investigation into similar mortgages suggests that the issue may be more widespread than initially thought.

The Federal Reserve's report indicates that the practice of claiming occupancy for better mortgage terms peaked before the 2008 financial crisis. The central bank has not yet commented on whether it will take any further action based on its findings.

The discovery of these mortgages comes amid ongoing pressure from the Trump administration on the Federal Reserve to lower rates and Federal Reserve Chair Jerome Powell to resign. The Federal Reserve's response to these pressures and its handling of the mortgage fraud allegations will be closely watched in the coming months.

References:
[1] Fed's Bowman doubles down on her dissent (https://thehill.com/business/5459518-michelle-bowman-rate-cut/)
[2] Bowman Focuses on Her Current Fed Role Including ... (https://www.bloomberg.com/news/articles/2025-08-19/bowman-focuses-on-her-current-fed-role-including-rules-overhaul)