Who: U.S. Justice Department opened a criminal mortgage-fraud investigation into Federal Reserve Governor Lisa Cook. When: the probe was disclosed on Sept. 4, 2025. Where: grand jury subpoenas were issued in Georgia and Michigan. What: investigators are examining whether Cook listed multiple properties as primary residences on mortgage applications. Result: the inquiry follows an FHFA referral and could have implications for Federal Reserve independence.
Key Takeaways
- The DOJ has opened a criminal probe into Governor Lisa Cook after a referral from FHFA Director Bill Pulte.
- Grand jury subpoenas were issued in the Northern District of Georgia and the Eastern District of Michigan.
- Ed Martin, a special assistant U.S. attorney assigned by the attorney general, is leading the mortgage-fraud work.
- Allegations focus on whether Cook listed more than one property as a primary residence to secure favorable mortgage terms.
- Cook owns homes in Michigan, Georgia and Massachusetts; she says disclosures were made during 2022 vetting.
- Cook was removed from her Fed post by the president and has filed a legal challenge to that firing.
- Legal outcomes could affect the Fed’s perceived independence and its ability to set interest-rate policy.
Verified Facts
The Justice Department initiated a criminal mortgage-fraud investigation into Governor Lisa Cook after the Federal Housing Finance Agency director, Bill Pulte, referred the matter to federal prosecutors. According to documents reviewed by reporters and a source familiar with the investigation, grand jury subpoenas were issued in both Georgia and Michigan.
Ed Martin, appointed as a special assistant U.S. attorney to assist with mortgage-fraud matters involving public officials, is working with the U.S. Attorneys’ offices in the Northern District of Georgia and the Eastern District of Michigan. Martin has been involved in related inquiries concerning other public figures.
The core allegation is that Cook listed multiple properties as primary residences on mortgage applications, a practice that can yield lower interest rates in some cases. Public filings show Cook owns properties in Michigan, Georgia and Massachusetts; she has said forms submitted during her 2022 vetting disclosed mortgages on three properties.
Separately, President Trump removed Cook from her Fed position citing the mortgage-fraud allegations; Cook has filed suit challenging that removal, arguing that the vetting process and her disclosures were known at confirmation and do not justify termination.
Context & Impact
Legal developments involving a sitting Federal Reserve governor raise questions about the central bank’s operational independence. Observers warn that prolonged litigation or criminal proceedings could create political pressure around monetary policy decisions.
President Trump has publicly pressed the Fed to cut interest rates, and the central bank was expected to consider a rate cut at its September 16-17 meeting. Any high-profile legal dispute involving a governor may intensify scrutiny of Fed actions and messaging.
The investigation also fits into a broader pattern: federal prosecutors have convened grand juries in several high-profile inquiries led or overseen by the same prosecutor assigned to this matter, increasing public attention on the government’s handling of cases involving politicians and public officials.
Official Statements
The governor’s lawyer described the DOJ action as politically motivated and said the discrepancies at issue are being addressed in Cook’s pending lawsuit.
Abbe Lowell, Counsel for Lisa Cook
Unconfirmed
- No criminal charges have been filed publicly against Governor Cook as of Sept. 4, 2025.
- The motive behind the FHFA referral and the extent of any evidence are not publicly detailed.
- It is not confirmed whether the subpoenas will lead to indictments or other formal actions.
Bottom Line
The opening of a criminal mortgage-fraud probe into a sitting Fed governor is a significant development with legal and political dimensions. The investigation follows an FHFA referral and involves grand jury activity in two states; its progress will be watched closely for effects on the Fed’s independence and on the broader political debate over monetary policy.