WASHNGTON—Credit unions continue to be drawn into the political fight over Federal Reserve Governor Lisa Cook, as newly surfaced loan documents from Bank Fund Credit Union could bolster Cook’s defense against fraud allegations, Reuters reported.
A loan estimate for Cook’s Atlanta property, issued May 28, 2021, by the $6.7-billion Bank Fund CU in Washington, shows she had declared the home would be used as a “vacation home,” not a primary residence, according to a document reviewed by Reuters. Two independent real estate experts told Reuters the disclosure could help Cook’s case because it indicates she informed her lender of her intended use of the property during the application process, Reuters said.
The paperwork, filed in Georgia’s Fulton County, contrasts with other mortgage documents cited by Trump administration officials, which they argue show Cook claimed both her Atlanta and Michigan residences as “primary” homes. Administration officials, led by Bill Pulte, director of the Federal Housing Finance Agency, used those records to accuse Cook of misrepresenting her residency status, a move that could affect mortgage and tax benefits. Pulte referred the matter to the Department of Justice, prompting a federal investigation and President Donald Trump’s decision to order Cook’s dismissal, Reuters said.
According to Reuters, the conflicting paperwork highlights a critical detail: while federal mortgage forms generally require loans to be for a “primary residence,” the Atlanta documents reviewed by the news agency stipulate the rule applies “unless Lender otherwise agrees in writing.” In Cook’s case, Bank Fund CU explicitly prepared a loan estimate listing “Property Use: Vacation Home.”
The Atlanta mortgage, valued at $540,000, was originated July 2, 2021, by Bank Fund CU, while a separate $203,000 mortgage for a Michigan property was issued June 18, 2021, by the $1.4-billion University of Michigan Credit Union, Reuters reported. Both loans were taken out roughly a year before Cook was confirmed to the Federal Reserve Board.
By surfacing in the case, the two credit unions have found themselves in the unusual position of being at the center of a political and legal battle involving a sitting Fed governor and the Trump administration.