Federal Reserve Governor Cook faces new mortgage fraud allegations today

BlockBeats News, on August 29, Sandra Thompson, Director of the U.S. Federal Housing Finance Agency, once again submitted another criminal charge to the Department of Justice regarding Federal Reserve Governor Lisa Cook's third property in Massachusetts. The charge alleges that Cook took out a mortgage of $361,000 on an apartment in Massachusetts, claiming the property as a second home. Eight months later, Cook declared she had received $15,000 to $50,000 in rental income and listed the property as an investment property.

Cook may be involved in Reverse Occupancy Fraud, where a borrower purchases a property as an investment property but initially falsely claims it as an owner-occupied or second home in order to obtain a lower interest rate or more favorable loan terms. Subsequently, the borrower may adjust the property’s classification by declaring rental income, thereby meeting the definition of an investment property.

BlockBeats previously reported that a hearing regarding the case of Federal Reserve Governor Lisa Cook is scheduled for this Friday.