On Thursday night, Bill Pulte, the Director of the Federal Housing Finance Agency (FHFA), announced that he had submitted a second criminal referral to the Department of Justice (DOJ) concerning Federal Reserve Board Governor Lisa Cook. This move comes amidst ongoing tensions as President Donald Trump seeks to remove Cook from her position at the Federal Reserve. Pulte's referral centers around alleged misrepresentations related to Cook's mortgage for a condominium in Cambridge, Massachusetts, as well as two homes she owns, which were disclosed in her government ethics filings.
Pulte took to social media platform X to share his thoughts, stating that the referral is significant, declaring, "3 strikes and you're out." His post included images of his letter addressed to Attorney General Pam Bondi and top DOJ official Ed Martin, outlining his allegations against Cook. This second referral implicitly challenges the argument that Trump lacks the legal grounds to remove Cook for cause, particularly since Pulte's first criminal referral involved conduct that allegedly took place before Cook's tenure at the Federal Reserve.
Earlier on the same day, Cook initiated legal action against Trump, seeking a federal court's intervention in Washington, D.C. to prevent what she describes as an unprecedented attempt by the president to dismiss her from the central bank. In light of Pulte's latest referral, CNBC has reached out to Cook's attorney and the Federal Reserve for comments, yet a response is pending.
Trump's decision to fire Cook references Pulte's initial criminal referral, which accused her of making false claims on mortgage applications for two properties. Pulte, who was appointed to lead the FHFA by Trump, has emerged as a vocal critic of the Federal Reserve, targeting Fed Chairman Jerome Powell and Cook in recent weeks. Trump has long urged the central bank to lower interest rates but has faced setbacks in achieving this goal. Prior to considering Cook's dismissal, Trump had also contemplated firing Powell.
Pulte's previous allegations suggest that Cook signed mortgage documents for properties located in Michigan and Georgia, claiming they were her primary residences. This claim could potentially have enabled her to secure lower interest rates and more favorable loan conditions. In his latest statements, Pulte detailed that in April 2021, Cook secured a 15-year mortgage for her Cambridge condominium, designating it as her "Second Home." However, just eight months later, on December 1, 2021, she filed an ethics form with the U.S. Government categorizing the property as an "investment/rental property."
Pulte points out that from 2022 to 2025, Cook consistently identified the Cambridge property as an investment/rental property, contradicting her earlier classification. By representing the property as a second home, Cook may have been able to obtain more favorable mortgage terms, as investment properties typically require higher down payments and carry increased interest rates due to perceived risks. These ongoing allegations have led to a criminal investigation by the DOJ, further complicating Cook's position as the first Black woman to serve on the Federal Reserve Board.
