What Is the Mortgage Fraud Lisa Cook Is Accused Of?

President Donald Trump has moved to fire Federal Reserve Governor Lisa Cook following a claim by a top administration official that she may have engaged in so-called mortgage occupancy fraud by falsely labeling a secondary home as her primary residence to get better loan terms. Cook hasn’t been charged with any crimes, but the allegation put a spotlight on what experts say is a relatively common type of financial misconduct.

The accusation, made on Aug. 20 by Federal Housing Finance Agency Director Bill Pulte, a staunch Trump ally, mirrored allegations of mortgage fraud previously made against two other high-profile Democrats who have been thorns in Trump’s side for years, Senator Adam Schiff of California and New York Attorney General Letitia James. Both have called the accusations baseless and politically motivated.