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What did Lisa Cook allegedly do? Trump launches probe into Federal Reserve Governor over mortgage claims
Trump has ordered a hearing into mortgage allegations against Lisa Cook as he renews his effort to remove her from the Federal Reserve.
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US President Donald Trump has set up a committee to investigate Federal Reserve Governor Lisa Cook over unproven allegations that she made false statements on mortgage documents.
The White House has scheduled a hearing for November 5 to examine the claims and decide whether there are legal grounds to remove her from the central bank.
Cook has denied wrongdoing and has not been charged with a crime. Her lawyers have questioned whether the inquiry will be fair, but said she is ready to present evidence to defend herself.
Trump sets November 5 hearing for Lisa Cook mortgage inquiry
The White House announced the inquiry in a memorandum dated October 7. The committee will examine allegations that Cook made “false statements in connection with one or more mortgage instruments.”
The hearing will take place at the White House and last no more than four hours. It will be closed to the public, but a transcript will be prepared. Cook must attend and answer questions from the committee, and she can bring her lawyers and submit evidence in her defense.
The panel includes Kevin Hassett, Trump’s top economic adviser; Keith Sonderling, acting director of the Office of Government Ethics; and Andrea Lucas, head of the Equal Employment Opportunity Commission. It will report to Trump on whether there is legal “cause” to remove Cook from the Federal Reserve Board.
Why is Donald Trump investigating Lisa Cook over mortgages?
The allegations concern two homes Cook owned in 2021. She bought a condominium in Atlanta, Georgia, and reportedly described it as her “primary” residence in at least one document, although she did not live there. She also had a home in Ann Arbor, Michigan, which was listed as a primary residence.
Mortgage lenders may offer different terms depending on whether a property is a primary residence or a second home. According to The New York Times, the allegations against Cook centre on whether the way she described her Atlanta condominium and her Michigan home misled lenders about how the properties would be used.
However, Cook’s lawyers have rejected claims of fraud. In a formal response submitted in August, they described the Atlanta property’s designation as an “entirely inadvertent oversight.” They also said other records correctly identified the condominium as a vacation home.
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Lisa Cook’s lawyers challenge Trump’s removal effort
Cook’s legal team has questioned whether the hearing will follow the law. In a statement, her lawyers said they had “grave doubts that this ‘hearing’ is a legitimate one that would conform to the law.”
“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,” they added.
The inquiry follows the Supreme Court’s 5-4 ruling in June that allowed Cook to remain in her position after Trump’s earlier attempt to remove her. The justices found that she had not received adequate notice and an opportunity to respond before her removal was announced in August 2025.
Trump has repeatedly pushed the Federal Reserve to lower interest rates. Cook’s case has added to concerns about political pressure on the central bank, which sets US monetary policy. The committee’s findings will determine its recommendation, but the inquiry itself does not establish that Cook committed a crime.
