Trump Launches New Investigation into Fed Gov. Lisa Cook Over Mortgage Fraud Allegations

by Anna D'Amico

President Donald Trump has taken another step in his prolonged effort to remove Lisa Cook from the Federal Reserve Board of Governors. This time, he seeks establish the "for cause" basis that the Supreme Court said was lacking in his initial attempt to terminate her.

In a memo to Attorney General Todd Blanche on Friday, Trump directed the AG to establish an investigative committee to investigate allegations that Cook committed mortgage fraud. However, Cook’s lawyers have doubts about the legitimacy of the process.

Cook, a Biden appointee and one of the 12 voting members of the rate-setting Federal Open Market Committee, was publicly accused of mortgage fraud last year by Federal Housing Finance Agency Director Bill Pulte, a close Trump ally, although no criminal charges have been filed in the matter. After Trump attempted to remove her from the Fed’s board by fiat, she sued for wrongful termination.

In June, the Supreme Court denied Trump's attempt to dismiss Cook, with the 5-4 opinion highlighting the Fed's historic independence from the White House in enacting monetary policy, which impacts mortgage rates.

Justice Brett Kavanaugh, a Trump appointee, in a concurring opinion cited “the longstanding historical practice and understanding that the Federal Reserve is an independent agency whose governors enjoy for-cause removal protection consistent with Article II of the Constitution."

After the ruling, Trump took to his Truth Social platform to state that he would “take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America.”

That action has now been taken.

In an October 7 memo from the White House, Trump directed the establishment of a committee of inquiry to “investigate allegations that Federal Reserve Governor Lisa D. Cook made false statements in connection with one or more mortgage instruments.”

The Assistant to the President for Economic Policy, the Chairman of the Equal Employment Opportunity Commission, and the Director of the Office of Government Ethics will serve as committee members.

“As President, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law,” Trump wrote in the memo. “To assist me in carrying out that responsibility, the Committee shall investigate the allegations against Governor Cook and report to me whether there is ‘cause’ for Governor Cook’s removal within the meaning of 12 U.S.C. 242, as construed in Trump v. Cook.”

Lisa Cook smiling — A committee of inquiry has been established to investigate fraud that Trump alleges Cook committed. However, Cook’s lawyers have doubts about the legitimacy of the process. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

The memo establishes an in-person hearing that will take place on November 5, 2026, where the Committee will “consider the evidence and allegations against Governor Cook.”

Cook may submit a statement regarding the allegations to the Committee ahead of the meeting, and can appear at the hearing where she may present argument and be examined by the Committee and her own legal counsel, according to the memo.

After the hearing, the Committee will submit their findings to Trump and recommend whether there is cause to remove Cook from her position.

In a statement to Realtor.com, Cook’s lawyers, Abbe D. Lowell and Norm Eisen, expressed their concerns about the legitimacy of the Committee’s hearing and future findings.

“In light of the President’s repeated statements that he has already decided to fire Governor Cook – regardless of the facts and evidence - we have grave doubts that this ‘hearing’ is a legitimate one that would conform to the law,” reads the statement. “But if it is anything close to objective, the conclusion will be that Governor Cook did not commit mortgage fraud, leaving no cause to remove her from the Federal Reserve Board.”

“We have engaged with the White House to evaluate whether the process proposed has a possibility of being a genuine one and not simply a box checking exercise. Governor Cook welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her,” the statement continues.

Three properties purchased by Cook are at the core of Trump’s accusations: a house in Ann Arbor, MI, and condominiums in Atlanta and Cambridge, MA.

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