President Donald Trump’s administration has opened a new front against Democratic officials, launching investigations into alleged mortgage fraud that critics say are politically motivated.
On Wednesday, Trump demanded the resignation of Federal Reserve Governor Lisa Cook, who was appointed by President Joe Biden. In a Truth Social post, Trump wrote Cook “must resign, now!!!”
The call came hours after William Pulte, director of the Federal Housing Finance Agency, sent a letter to Attorney General Pam Bondi alleging that Cook falsified documents to obtain favorable mortgage terms. Pulte accused Cook of misrepresenting her primary residence on homes in Ann Arbor, Michigan, and Atlanta.
Cook, the first Black woman to serve on the Fed’s Board of Governors, denied wrongdoing. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she said in a statement. “I do intend to take any questions about my financial history seriously … and provide the facts.”
Democrats already in investigators’ sights
The Cook allegations follow recent moves against two other high-profile Democrats: Rep. Adam Schiff of California, a leading figure in Trump’s impeachments, and New York Attorney General Letitia James, who won a $500 million judgment against Trump over fraudulent financial statements. Both are now facing special investigations into their mortgage records.
Bondi has appointed conservative activist Ed Martin as a “special attorney” to probe the cases, with grand juries in Virginia and Maryland expected to take up the James and Schiff allegations. Schiff and James have denied any impropriety.
In a sharply worded letter to Martin, James’ attorney Abbe Lowell accused the administration of selective enforcement, noting that Texas Attorney General Ken Paxton, a Trump ally, also claimed multiple homes as his “primary residence” but is not facing federal scrutiny.
Political pressure on the Fed
The episode has fueled concerns about Trump’s efforts to pressure the Federal Reserve, particularly as he has repeatedly attacked its interest rate policies. Sen. Elizabeth Warren, D-Mass., said Trump is using the Justice Department to intimidate central bank officials.
“Anyone can see that for months now, President Trump has been scrambling for a pretext to intimidate or fire Chair Powell and Members of the Federal Reserve Board,” Warren said. “The President and his Administration should not weaponize the federal government to illegally fire independent Fed Board members.”
A common political tactic, now federalized
Political operatives note that allegations of mortgage or residency fraud are a staple of opposition research in campaigns. Candidates have often faced fines for misfiling primary residence paperwork, though rarely criminal charges.
But with Cook, Schiff, and James now under investigation, Trump’s administration appears to be elevating what was once a routine political hit into a federal probe with potentially far-reaching consequences.
