President Trump said he would fire Federal Reserve Gov. Lisa D. Cook if she refused to step down in the wake of accusations that she committed mortgage fraud.
This morning, Trump was asked about Cook during a visit to a Washington museum. Trump responded, “I’ll fire her if she doesn’t resign.”
Cook, a Biden appointee, was accused of mortgage fraud in an X post by Bill Pulte, the director of the Federal Housing Finance Agency, who said Cook claimed two residences in different states as her primary residence in her mortgage applications. Pulte referred the matter to the Department of Justice for criminal investigation. Politico reported Ed Martin, who was appointed US Pardon Attorney by Attorney General Pam Biondi to probe high-profile mortgage fraud cases, sent a letter to Fed Chairman Jerome Powell to “remove Ms. Cook from your Board. Do it today before it is too late! After all, no American thinks it is appropriate that she serve during this time with a cloud hanging over her.”
Cook issued a statement that said, “I learned from the media that FHFA Director William Pulte posted on social media that he was making a criminal referral based on a mortgage application from four years ago, before I joined the Federal Reserve. I have no intention of being bullied to step down from my position because of some questions raised in a tweet. I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”
There is no precedent for president firing a Federal Reserve governor. According to a 1935 law, a president can only fire a Fed official “for cause,” which would include malfeasance, neglect of duty, or inefficiency. A Supreme Court ruling in May said the Fed differed from other agencies because it “is a uniquely structured, quasi-private entity,” thus prohibiting the president from making terminations at will.
She even tried to lease out her “Primary Residence” !
She is in charge of our mortgage rates and committing mortgage fraud to get a better rate herself!
No.
If I tried that I would be in huge trouble. Mortgage Fraud is serious.
I say the DOJ needs to get an indictment, prosecute it in court and get a conviction; like Trump’s 34 counts of mortgage, tax and insurance fraud case; in court.
We live in America, where we are presumed innocent until proven guilty; we also get to defend ourselves from “legitimate governmental power and indictments”.
Also, a person or now President, who had his days in court with extremely expensive defense lawyers at his disposal, and was convicted of 34 felony counts of mortgage and insurance fraud; is definitely not the credible one to claim someone else is improper or illegal.
The key word is accused and very easily proved guilty as your Primary Residence Exemption is public record.
“Primary Residence Exemption is public record” sounds like you’re talking about property taxes. The accusation of fraud is related to mortgages.
Isn’t this the king of fraud calling the kettle black?
Most home loans for a primary residence purchase require only 6 months of “intent” to reside in the subject property. After that the borrower is free to move & lease it out. Additionally, a life change occurrence, such as relocating out of state, before the end of 6 months is usually an exemption from the original residency requirement.
Pulte’s so called evidence of one property becoming a rental is a “For Rent” ad posted more than a year after the mortgage purchase. Without details of the actual mortgage documents, there is no way to know if she committed what could even be precieved as and proving her residency intent just months before being nominated for the Fed board, will be exceptionally difficult.
Investigate? Yes, of course. But forcing a resignation or threatening to fire without all the facts is B.S! Especially coming from someone who for one is well known to be pressuring the Fed board she serves on, and secondly who himself has been convicted on 34 felony counts of falsified business records and found liable in a civil loan fraud case. (Note: eliminating the the fine in the civil case did not overturn the judgement)