The Trump administration’s effort to oust Lisa Cook from her position as a governor on the Federal Reserve Board took a new twist as the Department of Justice (DOJ) is reportedly opening a criminal investigation into the accusations that Cook committed mortgage fraud.
The probe was first reported by the Wall Street Journal, which cited unnamed “officials familiar with the matter” – as of this writing, there is no announcement on the DOJ website.
The DOJ has reportedly issued subpoenas as part of its inquiry into whether Cook submitted fraudulent information on mortgage applications for properties in Ann Arbor, Michigan, and Atlanta. DOJ investigators are using grand juries in their probe. It is unclear how long the DOJ probe will take to complete.
The investigation follows two criminal referrals made by Bill Pulte, the director of the Federal Housing Finance Agency, who has repeatedly used social and broadcast media to accuse Cook of engaging in mortgage fraud. President Trump used Pulte’s accusations as the inspiration to fire Cook, marking the first time that a president sought to expel a leader from the central bank. Cook filed a lawsuit last month to block Trump’s action, stating this was only happening so he could “forward his agenda to undermine the independence of the Federal Reserve.”
The Fed will hold its next rate policy meeting on Sept. 16-17, and a federal judge is now weighing Cook’s request for an emergency order to prevent her from being fired while case proceeds.
The DOJ has launched similar Pulte-fueled probes into New York Attorney General Letitia James and Sen. Adam Schiff (D-CA) two longtime foes of Trump, but to date no criminal investigations into them have been announced.
trump committed mortgage fraud to many times
If they did say both mortgages are primary residence it is fraud. Typically a lender increases the interest rate between 1-1.5% for second homes which is a big savings on the average mortgage of $400,000. If they did it they know better they are government official’s and should be held to a higher standard than the average joe.
Maybe it isn’t a bad thing to clean house every so often. Just the idea that someone else has recognized some fraud is enough to reconsider this person staying in the job that entails decisions being made that affect millions.
If you’re going to be in charge of the Federal Reserve, damn you better sure know how to fill out a mortgage application
How can she vote to set the rates for the country when she can’t even fill out a loan application correctly?
Lisa Cook knew exactly what she was doing. She lied to get preferential mortgage rates, 3 mortgages.
After finding that Trump engaged in fraud by flagrantly padding financial statements that went to lenders and insurers, Judge Arthur Engoron ordered him last year to pay $355 million in penalties. With interest, the sum has topped $515 million.
READ MORE: 6 things to know about Trump’s appeal of his $489 million civil fraud verdict
The total — combined with penalties levied on some other Trump Organization executives, including Trump’s sons Eric and Donald Jr. — now exceeds $527 million, with interest.
“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution,” Judges Dianne T. Renwick and Peter H. Moulton wrote in one of several opinions shaping the appeals court’s ruling.
Engoron also imposed other punishments, such as banning Trump and his two eldest sons from serving in corporate leadership for a few years. Those provisions have been on pause during Trump’s appeal, and he was able to hold off collection of the money by posting a $175 million bond.
READ MORE: Former Trump exec Weisselberg gets 5 months in jail for lying in civil fraud case
The court, which was split on the merits of the lawsuit and the lower court’s fra
HIGH INTEREST RATES HAVE STOPPED MANY PEOPLE FROM PURCHASING THEIR FIRST HOME, OR MOVING UP TO A BETTER HOME. THEY ARE BEING TURNED DOWN ON FINANCING BECAUSE OF LACK OF INCOME, CAUSED BY HIGHER INTEREST RATES. THE FED HAS KEPT HIGH INTEREST RATES AS A HEDGE AGAINST INFLATION, HOWEVER IT HAS KILLED THE HOUSING MARKET.IT’S LONG OVER DO FOR SOME ADJUSTMENT.
If Pulte is so concerned about mortgage fraud, I assume he is plowing through all mortgage to see who else committed fraud in this country. I bet there are millions of people. Until he does that, I am not convinced this is not just retribution on behalf of the convicted felon, who has committed real estate fraud throughout the decades. Our president, the man of real “waste, fraud & abuse”.