Event Overview

Whistleblower: Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), who wrote to Attorney General Pam Bondi and other Justice Department officials on August 15, 2025, requesting an investigation into Cook's loan behavior.

Trump's Reaction: That day, Trump immediately posted on social media, "Strongly demands Cook must resign immediately!!!"

Federal Reserve and Justice Department: As of August 20, 2025, neither the Federal Reserve nor the Justice Department has commented on the matter, and Cook has not responded.

Details of the Two Loans Involved

2021-06-18 Michigan $203,000, 15 years

2021-07-02 Atlanta $540,000, 30 years

Both loans are declared as primary residences

Terms State: Must occupy within 60 days and reside for at least one year.

Controversy Focus

Residence Declaration vs. Rental Conflict: The complaint states that Cook declared two properties as "primary residences" in the loan documents, but the Georgia property was subsequently listed for rent, which clearly contradicts the requirements for a "primary residence" in the loan agreement.

Question of Motive: In the U.S., "primary residence" mortgages usually enjoy lower interest rates and down payments, while loans for investment properties (such as rental properties) typically have less favorable terms. This raises doubts about the authenticity of her declaration for owner-occupied purposes.

Legal and Political Impact

Suspected Criminal Fraud: Bill Pulte requests the Justice Department to investigate whether Cook constitutes "mortgage fraud"; this is a serious criminal charge that could carry a maximum sentence of several decades.

Director Cook involved in mortgage fraud scandal; the Federal Reserve reported two years ago that such behavior is widespread.

Researchers at the Philadelphia Fed assessed the number of "fraudulent investors" in the mortgage market in a 2023 report, defining them as those who applied for multiple owner-occupied loans within four quarters after the first owner-occupied loan was issued. The study covered 584,499 loans from 2005 to 2017, of which 22,431 were identified as fraudulent. However, researchers warn that some owner-occupied fraud may be unintentional, such as borrowers unable to sell their original properties due to a poor real estate market.

Political Background: Trump and his allies have repeatedly launched mortgage loan investigations against Democratic figures, such as California Senator Schiff and New York Attorney General James. This case is considered part of their strategy to attack the Federal Reserve and accelerate interest rate cuts.

Federal Reserve Policy Balance: If Cook is forced to resign or investigated, her vacant seat may be filled by someone inclined to cut interest rates, which would significantly impact the Federal Reserve's policy direction.

Current Stage Summary

As of August 20, 2025, the event is still in its preliminary stage:

Reports have been submitted, but there has been no official public response to the initiation of an investigation;

Public opinion across the country is focused on this accusation, but whether it will lead to legal proceedings remains unclear;

Cook has not publicly responded, and neither the Justice Department nor the Federal Reserve has commented.

How should we interpret the above?