U.S. Federal Reserve Governor Lisa Cook under attack. Hardly a rabble-rouser, Yellen has succumbed to the ax of President Donald Trump, who is seeking to oust her from the Federal Reserve Board. The allegations against Cook center on potential fraud related to two mortgages: one for her home in Ann Arbor, Michigan, and the other for a property in Atlanta, Georgia. Critics say she misled lenders when getting these loans, an allegation that Cook has long denied.
The spat that made Cook’s status controversial Bill Pulte, director of the Federal Housing Finance Agency (FHFA), opened a whistleblower investigation into Cook’s financial dealings. This unprecedented move generated significant attention and criticism. Pulte’s actions have included referring the matter to the Department of Justice, claiming that Cook’s actions demonstrate “further intent to defraud.”
In 2021, Cook was able to get a mortgage on her home in Michigan. She secured a solid rate of 2.875% on a 15-year loan. According to local officials in Ann Arbor, she is in compliance with all the legal requirements for receiving tax breaks on the property. They pointed out that she had declared it as her homestead. The City Assessor of Ann Arbor, Jerry Markey, confirmed this, stating, “Living elsewhere temporarily does not necessarily make an owner ineligible for a principal residence exemption.”
Cook sought approval from the city to rent out her Michigan property on a short-term basis in October 2022, and again in April 2024. In July she warned city officials that she’d enlisted a rental management company to handle the property. In April 2025, she filed an application for a Certificate of Use permitting the home to be used as a long-term rental.
The allegations against Cook reach outside her home state of Michigan. She was able to secure a 30-year mortgage on her Atlanta home at a 3.25% interest rate. Local officials in Georgia have made clear that she never listed this property as her primary residence. This omission has serious consequences on her tax status. This mismatch has prompted scrutiny by critics, including the Michigan Taxpayers Alliance, about her eligibility for the tax exemptions tied to her home in Ann Arbor.
In an effort to defend Cook against these allegations, her attorneys have stated, “The attempt to remove Governor Cook is based on cherry-picked social media posts from the FHFA Director that collapse under basic scrutiny.” They say that the promises being made by Pulte and his commission are purely speculative, unsupported by evidence, and driven by partisan politics.
Despite the ongoing investigation and political pressure, Cook has maintained her innocence throughout this process. Images of four rental homes owned by Ms. Gilliard. She maintains that she did nothing wrong when she took out her mortgages, nor when she ran her properties.
Elected leaders in Ann Arbor have said they are keeping a very watchful eye on the developments. According to City Assessor Markey, Cook now has until the end of the year to withdraw the tax exemption on her primary residence in Michigan. If she wants to explore different rental opportunities, she must act prior to that.
As this process plays out, it has opened up a much larger dialogue about the governance and accountability of our federal institutions. Critics of Cook have jumped at the chance to demand more oversight of Federal Reserve officials. They are calling for more oversight of the officials’ financial transactions.