Federal Reserve Governor Lisa Cook referred to a condominium she purchased in June 2021 as a “vacation home” in a loan estimate, a characterization that could undermine claims by the Trump administration that she committed mortgage fraud.
Cook sued the Trump administration to block her firing, the first time a president has sought to remove a member of the seven-person board of governors.
Cook secured an injunction Tuesday that allows her to remain as a Fed governor.
Claiming a home as a “primary residence” can result in better down payment and mortgage terms than if one of the homes is classified as a vacation home.
Fulton County tax records show Cook has never claimed a homestead exemption on the condo, which allows someone who uses a property as their primary residence to reduce their property taxes, since buying it in 2021.
When Federal Reserve Governor Lisa Cook described a condominium she bought in June 2021 as a “vacation home” in a loan estimate, it may cast doubt on allegations of mortgage fraud made by the Trump administration.
In an attempt to restructure the central bank and implement a sharp reduction in interest rates, President Donald Trump has attempted to fire Cook “for cause,” citing claims that she simultaneously claimed the condo and another property as her primary residence. According to documents The Associated Press was able to obtain, Cook also referred to the property as a “second home” on a second form she filled out in order to obtain a security clearance. “..”.
For the first time, a president has attempted to remove a member of the seven-member board of governors, and Cook sued the Trump administration to stop her firing. Cook obtained an injunction on Tuesday that permits her to continue serving as governor of the Federal Reserve.
Before the Fed meets to decide whether to lower its key interest rate, the administration has appealed the decision and requested an emergency ruling by Monday. The majority of economists predict a quarter-point rate cut.
Cook is accused by Bill Pulte, a Trump appointee to the agency that oversees mortgage giants Fannie Mae and Freddie Mac, of signing separate documents in which she claimed that the Atlanta property and a house in Ann Arbor, Michigan, which was also bought in June 2021, were “primary residences.”. The Justice Department has launched an investigation after Pulte sent a criminal referral to them.
Better mortgage terms and a lower down payment may be obtained by claiming a home as a “primary residence” as opposed to a vacation home.
It was Reuters that first reported on Cook’s property descriptions.
Cook purchased the condo in 2021, but according to Fulton County tax records, he has never claimed a homestead exemption, which lowers property taxes for those who use a property as their primary residence.
An inquiry was not immediately answered by the White House.
