Trump escalates pressure on the Federal Reserve: FHFA Director initiates criminal referral regarding Cook's third mortgage

The Director of the Federal Housing Finance Agency, Bill Pulte, has once again "reported" Cook to the Department of Justice, marking the second criminal referral. On Friday, Beijing time, Bill Pulte posted on social media X, stating that he has submitted a second criminal referral to the Department of Justice, accusing Cook of making false statements to the U.S. government regarding property use and loan conditions while serving as a Federal Reserve Board member. Pulte's latest accusation involves Cook's apartment in Cambridge, Massachusetts. Pulte wrote: Strike three. Today, the Federal Housing Finance Agency submitted a second criminal referral to the Department of Justice regarding Lisa D. Cook, involving the mortgage of her third property and her false statements to the U.S. government about property conditions while serving as a Federal Reserve Board member. On April 7, 2021, Cook secured a 15-year mortgage for an apartment in Cambridge, Massachusetts, declaring it as a "second home." However, just eight months later, on December 1, 2021, Cook listed this property as an "investment/rental property" in an ethics disclosure submitted to the U.S. government. In subsequent disclosures from 2022 to 2025, Cook consistently classified this property as an investment/rental property rather than a second home. Declaring a property as a "second home" may allow Cook to obtain a lower down payment ratio and interest rate; whereas investment properties typically require a higher down payment and have higher loan rates due to increased risk. Additionally, it is alleged that Cook classified her property in Atlanta, Georgia, as a "primary residence" in documents from 2022 to 2025, but evidence suggests that the property was actually rented out. Similarly, in a 2025 government document, Cook referred to her property in Ann Arbor, Michigan, as a "personal residence," yet we have reason to believe that by 2025, this property was also being used as a rental rather than a primary residence. These inconsistent declarations indicate that Cook may have made multiple, additional false statements regarding her mortgage and property use, including in official documents submitted to the U.S. government. It is noteworthy that this new criminal referral carries significant political implications. Previously, there were claims that Trump lacked the authority to dismiss Cook based on "grounds" because Pulte's first referral involved her actions prior to joining the Federal Reserve. However, this new accusation points to her declaration issues during her tenure as a Federal Reserve Board member, effectively closing a legal loophole for Trump's dismissal action. Earlier the same day, Cook had already filed a lawsuit in federal court in Washington, D.C., claiming that Trump's dismissal of her was "illegal" and requesting the judge to block this unprecedented dismissal action. U.S. District Court Judge Jia Cobb (appointed by former President Biden) is scheduled to hear her request for an emergency injunction on Friday. If the court supports Cook, Trump's dismissal action may be temporarily suspended Cook is the first Black woman governor in the history of the Federal Reserve, which makes this case particularly sensitive. Her lawyer stated that the mortgage issue mentioned in the first criminal referral may simply be a "clerical error" and not malicious fraud. Meanwhile, the Department of Justice has confirmed that it will investigate Cook's mortgage issue. Following the first criminal referral, Trump immediately announced the dismissal of Cook, marking the beginning of an intense legal battle and further escalating his conflict with the Federal Reserve. Trump has long been a fierce critic of the Federal Reserve and its chairman Powell, calling for rapid and significant interest rate cuts to stimulate the economy. If he successfully ousts Cook, Trump will hold a majority of the seven governor positions at the Federal Reserve, thereby directly influencing the direction of monetary policy