Federal Reserve Gov. Lisa Cook’s attorney pushed back on President Donald Trump’s renewed attempt to remove her from the Fed board over mortgage fraud allegations, arguing the move lacks legal grounds.
In a letter to White House counsel David Warrington on Wednesday, Abbe David Lowell, counsel to Cook, responded to a notice from deputy chief of staff Dan Scavino in early August stating that the president is considering removing Cook for “cause.”
The notice, Lowell said, relies entirely on unproven criminal allegations laid out in an August 2025 referral to the Department of Justice by Federal Housing Finance Agency (FHFA) Director Bill Pulte. That referral claims Cook improperly obtained “primary residence” mortgages on more than one property and failed to disclose rental income.
“Governor Cook has never committed mortgage fraud or any intentional wrongdoing, and there is no legally cognizable cause for removing her from the Federal Reserve Board,” Lowell wrote.
In a statement, Lowell and Norman Eisen of the Democracy Defenders Fund said that the attacks “are not about real estate paperwork; they are an attempt by President Trump to force the Federal Reserve to bend to his will.”
“Our response should put this matter to rest once and for all, but, if necessary and in keeping with the Supreme Court’s ruling, we are prepared to challenge any illegal attempt to remove Governor Cook,” they said.
In late July, aSupreme Courtruling limited Trump’s ability to summarilyfiremembers of the Fed but left open the door for removal “for cause.” In a 5-4 decision, Chief Justice John Roberts held that Cook was entitled to notice and an opportunity to respond to the charges before any dismissal, emphasizingCongress’s design of theFedas structurally independent from the White House.
The White House did not immediately respond to HousingWire‘s request for comment.
Loans in question
The White House letter cites two loans Cook took out in 2021: one on a home in Ann Arbor, Michigan, and one on a condominium in Atlanta, using standard Fannie Mae and Freddie Mac security instruments with covenants to occupy the property as a “principal” residence.
According to Lowell, Cook had lived and worked in Michigan for more than 15 years as a tenured professor at Michigan State University. She initially used a lender’s website to seek information about a “vacation home” mortgage, identifying Michigan as a primary or permanent residence and Atlanta as a “2nd home” in other documents.
Lowell characterized Cook’s execution of an Atlanta “primary” or “principal” residence mortgage form as an inadvertent paperwork error, not an intentional misrepresentation. He further argued that the Atlanta mortgage was never sold to Fannie or Freddie, so the FHFA seller and servicer guidelines cited in the referral do not govern the loan.
The White House notice also pointed to a listing of the Atlanta property and the absence of rental income on Cook’s 2022 and 2023 financial disclosures. Lowell said Cook never actually rented the property and therefore had no rental income to disclose. Neither the loan agreement nor the condominium association rules barred her from renting if she chose to do so.
Citing news reports, Lowell said Trump in 1993 obtained two “primary residence” mortgages on separate Florida properties just seven weeks apart while actually residing in New York and listing both Florida homes for rent. He also referenced reports that Treasury Secretary Scott Bessent, Attorney General Todd Blanche, and at least three other current or former cabinet members have simultaneously held multiple mortgages classified as primary or principal residence.
“For the second time in a year, we have explained why there is no legal basis for President Trump to remove Governor Cook for cause. An inadvertent error is not fraud, as the president and a third of his cabinet should know because they reportedly did the same thing,” Lowell and Eisen said in the statement.