Mortgage Fraud Allegations Rock Federal Reserve

Brooklyn,,New,York,,Usa,,April,17,2023:,United,States,Attorney

FHFA Director Bill Pulte’s second criminal referral against Federal Reserve Governor Lisa Cook intensifies fears of weaponized agencies.

Story Snapshot

FHFA Director Bill Pulte, a Trump ally, files a second criminal referral to the DOJ accusing Fed Governor Lisa Cook of mortgage fraud involving a third property.
This referral follows earlier allegations against other high-profile Democrats, signaling a pattern of regulatory action against political opponents.
Cook and her legal team denounce the charges as politically motivated, while the Department of Justice remains silent on pursuing charges.
The unprecedented use of FHFA authority ignites debate over the politicization of federal agencies and the erosion of agency independence.
Experts warn these developments could undermine public trust in American institutions and threaten stability in housing and financial markets.

Pulte’s Criminal Referral Escalates Political Tensions

On August 28, 2025, Bill Pulte, Director of the Federal Housing Finance Agency and a prominent Trump supporter, submitted a second criminal referral to the Department of Justice against Federal Reserve Governor Lisa Cook. The referral alleges mortgage fraud, this time citing evidence related to a third property owned by Cook. This action comes after similar referrals targeting Democratic figures such as New York Attorney General Letitia James and U.S. Senator Adam Schiff, highlighting an aggressive pattern in using regulatory power to address purported misconduct by political opponents.

Trump's FHFA appointee Bill Pulte targets Fed governor Lisa Cook in 2nd criminal referral. pic.twitter.com/WQSDkPZGcc

— Fox News (@FoxNews) August 29, 2025

Cook and her legal counsel have categorically denied the allegations, labeling them as part of a coordinated smear campaign. On August 29, Cook’s attorney, Abbe David Lowell, publicly condemned the referral as baseless and motivated by political animus. Despite mounting pressure, Cook remains on the Federal Reserve Board and is actively contesting attempts by President Trump to remove her. The Department of Justice has yet to comment on whether it will investigate or pursue charges, leaving the status of the case uncertain and fueling further speculation about the motives behind the referrals.

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Unprecedented Actions Raise Questions About Agency Independence

The FHFA, created in 2008 to oversee Fannie Mae and Freddie Mac, has traditionally upheld a nonpartisan approach. Pulte’s appointment as director, following his rise as a Trump donor and advocate, marks a significant departure from this precedent. Experts note that there is virtually no history of FHFA directors issuing criminal referrals against political figures, especially those in such high-profile regulatory positions. The direct targeting of Federal Reserve officials introduces a new level of conflict between agencies that were previously non-confrontational, raising alarms about the politicization of federal regulatory bodies.

Long-Term Implications for Trust and Stability

In the short term, the referrals have heightened tensions between the FHFA and the Federal Reserve, placing targeted officials under intense legal and reputational scrutiny. In the long run, the erosion of agency independence and increased politicization of regulatory bodies could create a chilling effect on public service, dissuading qualified individuals from serving in government roles out of fear of political retribution.

The broader repercussions extend to the housing and financial sectors, as Fannie Mae and Freddie Mac—entities under FHFA oversight—could face increased scrutiny over potential political interference. The Federal Reserve’s ability to operate independently is also at risk if political removals of board members become normalized. As the DOJ remains silent and Cook continues her legal defense, the episode underscores ongoing challenges to the integrity and credibility of American institutions.