WASHINGTON—Credit unions are being pulled into the political crossfire after U.S. President Donald Trump moved to oust Federal Reserve Governor Lisa Cook, alleging she misrepresented her residency status on two mortgages.
Both loans—one from University of Michigan Credit Union and another from Bank Fund Credit Union—were originated in 2021, about a year before the Senate confirmed Cook to the Fed Board, Reuters reported.
Trump’s action, based on a referral from Federal Housing Finance Agency Director William Pulte, accuses Cook of claiming two separate homes as her primary residence. Cook, represented by attorney Abbe Lowell, rejected the charge, saying the president lacks authority to remove her without lawful cause and pledging to challenge the attempt in court, Reuters said.
Cook’s annual financial disclosure, filed with the U.S. Office of Government Ethics, lists three mortgages from 2021—one for an investment property and two for personal residences. At the time, the Georgia native was teaching at Michigan State University, Reuters reported.
The loans were issued roughly 15 months into the COVID-19 pandemic, when mortgage rates had plunged as the Fed sought to stabilize the economy. Millions of homeowners took advantage of the low-rate environment to refinance or secure new loans, Reuters noted.
What The Documents Say
According to Reuters, Cook’s loan documents list two separate properties as her primary residence.
Reuters said a public records search identified a $203,000 mortgage in Cook's name in Washtenaw County, Mich., dated June 18, 2021, and a $540,000 mortgage, also in her name, in Fulton County, Ga., dated July 2, 2021. The mortgages were originated by the $1.4-billion University of Michigan CU, based in Ann Arbor, for the Michigan property and $6.7-billion Bank Fund Credit Union, based in Washington, for the Georgia property.
Lisa Cook
Reuters pointed out documentation for both contains an identical occupancy clause that requires the borrower to, within 60 days, "occupy the property as borrower's principal residence for at least one year after the date of occupancy, unless lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond borrower's control."
It is not known if Cook obtained such an agreement, if there were extenuating circumstances, or whether or for how long she occupied either property, Reuters said.
CUToday.info requested comment from both credit unions, but neither responded by press time.