No evidence of primary residence violation by Fed Gov Lisa Cook, says Michigan official

The spot taxation authorization successful Ann Arbor, Michigan, said that Federal Reserve Governor Lisa Cook hasn't breached rules for taxation breaks connected a location determination that Cook declared her superior residence.

The finding, which came successful effect to a Reuters petition that the metropolis review Cook's spot records, could boost Cook's defence against efforts by the Trump medication to region her from the Federal Reserve board.

Ann Arbor has "no crushed to believe" that Cook violated spot taxation rules, City Assessor Jerry Markey told Reuters. Cook has astatine times lived elsewhere and metropolis records bespeak she sought support from Ann Arbor authorities to rent retired the Michigan location connected a short-term basis.

Temporary lack from the location oregon renting it retired short-term wouldn't disqualify her from a taxation exemption successful Ann Arbor, the taxation authoritative said. "Living elsewhere temporarily does not needfully marque an proprietor ineligible for a main residence exemption," said Markey.

The official's remarks travel arsenic the medication of President Donald Trump is accusing the Fed politician of fraud related to mortgages connected the Ann Arbor location and different she purchased successful Atlanta. Bill Pulte, the manager of the Federal Housing Finance Agency, has spearheaded the effort, denouncing Cook on societal media and referring the substance to the Department of Justice, which launched an investigation.

At contented is whether Cook, whom Trump has sought to occurrence from the Fed board, lied to her lenders erstwhile obtaining the 2 mortgages. The Trump administration, citing her owe contracts, has alleged that she improperly told some lenders that the indebtedness was for a superior residence. By declaring a location arsenic a superior residence, a homeowner tin – but doesn't ever – unafraid a amended involvement complaint connected the indebtedness and, separately, tin person discounts from section authorities connected spot taxes.

An appeals tribunal was expected to regularisation Monday on whether Cook can proceed successful her occupation portion litigation implicit Trump's effort to occurrence her is pending. However the tribunal rules, an contiguous entreaty to the Supreme Court is expected, adding a further complication to her presumption for the Fed's upcoming two-day gathering.

Reuters past week reported that Cook, according to a indebtedness estimation for the owe successful Atlanta, had informed her lender that the spot would beryllium a "vacation home," not a superior residence . In a societal media station aft the quality agency's story, Pulte wrote that a "vacation home" assertion successful the Atlanta owe paperwork could inactive beryllium fraudulent if she yet secured the indebtedness by declaring otherwise.

"That is highly concerning," Pulte wrote connected X, "and successful my opinion, evidences further intent to defraud."

The afloat grade of Cook's representations to her lenders remains unclear, including immoderate paperwork that whitethorn person changed the "vacation home" characterization by the clip the owe was settled. Local officials successful Georgia told Reuters that Cook never declared the location arsenic a superior residence for taxation purposes there.

Cook has repeatedly denied immoderate wrongdoing. In a written connection connected Monday, her attorneys said: "The effort to region Governor Cook is based connected cherry-picked societal media posts from the FHFA Director that illness nether basal scrutiny."

Since securing a owe for the Michigan location successful 2021, section spot records amusement she got support from the metropolis to rent it retired connected a short-term ground successful October 2022 and again successful April 2024. Some cities, similar Ann Arbor, necessitate location owners to get a licence to rent retired their home, adjacent connected a short-term basis.

In April 2025, months earlier Pulte began publically accusing her of fraud, Cook sought support to database the location arsenic a semipermanent rental, according to section records and metropolis officials. In July, she told the metropolis she had enlisted a rental steadfast to negociate the property, the officials said.

Cook now has until the extremity of the twelvemonth to revoke the taxation exemption connected the home, said Markey, the Ann Arbor metropolis assessor.

The spot taxation records successful some states, on with Cook's "vacation home" disclosure successful Atlanta, could beryllium considered beardown factors successful her defense, existent property and ineligible experts said. For immoderate condemnation of owe fraud, which is rarely pursued arsenic a transgression offense in the United States, they said prosecutors would person to amusement she deliberately sought to deceive her lenders.

Paul Pelletier, a Washington-based erstwhile national authoritative who targeted slope fraud, said the Justice Department historically would lone prosecute cases successful which a fiscal instauration suffered important loss. "This would ne'er person crossed my desk, fto unsocial beryllium prosecuted," helium said, regarding the accusations against Cook so far.

The rates on Cook's 2 mortgages show Cook didn't bask discounts compared with prevailing rates disposable to borrowers erstwhile she negotiated the loans successful 2021.

Her complaint connected the 15-year indebtedness connected the Michigan spot was 2.875%, versus a prevailing nationalist complaint successful that play ranging from 2.23% to 2.45%, according to Freddie Mac data. And her complaint connected the 30-year indebtedness connected her Atlanta spot was 3.25%, versus a prevailing complaint astatine the clip ranging from 2.93% to 3.04%, according to Freddie Mac data.