The US Department of Justice has opened a criminal grand jury investigation into Federal Reserve Governor Lisa Cook and issued multiple subpoenas over alleged mortgage fraud tied to properties in Ann Arbor, Michigan, and Atlanta, according to the Wall Street Journal.
The probe centers on whether Cook claimed more than one primary residence and labeled a rented property as a “second home,” representations that can secure lower rates and preferential terms.
The inquiry follows a criminal referral and weeks of disclosures from Federal Housing Finance Agency Director Bill Pulte alleging misstatements on mortgage applications.
Prosecutors have convened a grand jury and begun seeking records. Ed Martin, a senior DOJ official, is involved at the direction of Attorney General Pam Bondi, per the Journal.
Cook is simultaneously fighting a White House move to remove her “for cause.” She filed suit last Thursday challenging President Donald Trump’s action earlier in the week. Her attorneys told the court she “did not ever commit mortgage fraud.”
The judge is considering an emergency order to prevent her removal while the case proceeds.
Pulte, whose agency oversees Fannie Mae and Freddie Mac, has argued the case goes to credibility, telling CNBC, “I don’t believe for the last 4 years that the Fed has been independent.”
Cook has previously highlighted her banking experience, telling senators in 2023 she had “significant experience in banking and finance,” including service on the Chicago Fed board and roles at an investment bank and a large commercial bank.
The timing presses on policy: the Fed’s next meeting begins Sept. 16, and the court’s decision will determine whether Cook participates.
Information for this story was found via The Wall Street Journal and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
