Attorneys representing Federal Reserve Governor Lisa Cook submitted a roughly five-page written rebuttal to White House counsel David Warrington on August 26, directly addressing the earlier correspondence from Deputy Chief of Staff Dan Scavino. Scavino's August 5 letter asserted there were "reasonable grounds to believe" Cook had made false statements on one or more mortgage agreements, granting a 21-day window for response.
Attorney Abe Lowell, representing Cook, countered in the filing that the mortgage fraud allegations "remain unfounded and untrue," stating emphatically that "Governor Cook has never committed mortgage fraud or any intentional misconduct," and adding there exists no legally cognizable basis to remove her from the Federal Reserve Board. Cook herself has not been charged with any crime, and the White House declined immediate comment. The filing itself does not determine whether President Trump will issue another removal order based on these findings.
Cook, who was nominated by President Biden and confirmed by the Senate in 2022, made history as the first Black woman to serve on the Board of Governors. Board members serve staggered terms, and the president cannot remove them for policy disagreements, only for cause as defined under the Federal Reserve Act. In August 2025, then-Federal Housing Finance Agency Director Bill Pulte submitted a criminal referral to the Justice Department, alleging Cook had simultaneously claimed "primary residence" status on both her Ann Arbor, Michigan home and an Atlanta, Georgia condominium. Trump subsequently announced her removal, prompting Cook to file suit.
In June 2026, the Supreme Court ruled 5-4 that she could not be immediately removed before being afforded a proper opportunity to respond, remanding the case to lower courts. The dispute centers on documents from 2021 concerning the two properties, with lawyers now systematically rebutting each of the administration's two stated grounds, which Lowell summarized as being "combined to constitute cause for removal." The first involves loan documents signed within a two-week period in 2021, where both the Ann Arbor residence and Atlanta condo were designated as primary residences, a classification typically associated with lower interest rates.
A roughly $203,000, 15-year loan from the University of Michigan Credit Union was recorded in Washtenaw County on June 18, 2021, referencing the Ann Arbor address. The Ann Arbor property has enjoyed a primary residence tax exemption since 2006, while Fulton County records show no homestead exemption on the Atlanta condo. Counsel characterized the Atlanta designation as "a purely inadvertent omission." An earlier May 2021 application with the same lender had already marked the condo as a vacation property; the lender was aware she had long resided in Michigan, had taught at Michigan State University for over 15 years, and possessed her financial information. The filing asserts she received no preferential rate on either property due to the classification, and the Atlanta loan was not resold to Fannie Mae or Freddie Mac, with final categorization determined by the lender.
Lowell emphasized that negligence does not constitute fraud nor meet the "for cause" standard under the Federal Reserve Act, noting neither matter involved intent or criminality. Lower courts have previously leaned toward interpreting "for cause" as covering conduct during one's tenure, whereas the disputed documents were signed before she assumed office. Counsel noted that reportedly, about one-third of the president's own cabinet members have also taken out primary residence loans on multiple properties.
Lowell and fellow attorney Norman Eisen stated in a joint declaration that this marks the second time in a year they have demonstrated there is no legal basis for removal, asserting that "these attacks on Governor Cook have nothing to do with real estate forms; they represent President Trump's attempt to bend the Federal Reserve to his will." Scavino's August 5 letter had argued that even absent fraud, the false statements themselves constitute misconduct sufficient to question her credibility as a governor. Cook's team interprets the same documents as clerical errors on lender standard forms, with the lender already aware of the second property.
Trump has advocated for significant rate cuts, while most Board members were appointed by previous presidents. Pulte has continued to publicly state his belief that Cook will face mortgage fraud charges even after the Supreme Court ruling. As of August 26, there are no public indications that criminal investigation has reached the indictment stage. The response satisfies the Supreme Court's requirement for a hearing opportunity, and the president may either issue another removal notice or hold off. Either path would again subject the "for cause" standard and whether pre-employment conduct can be held against her to judicial review. Cook currently continues to serve on the Board of Governors.
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