Fed Report Reveals Widespread Mortgage Fraud, Political Fallout Intensifies

The Federal Reserve's 2023 research uncovered 22,431 fraudulent investor mortgages among 584,499 loans originated between 2005-2017. Philadelphia Fed analysts defined fraud as borrowers securing multiple owner-occupied home loans within four quarters.

Political tensions escalated as President Trump's allies demand Federal Reserve Governor Lisa Cook's resignation. The controversy stems from Cook's simultaneous primary residence claims on Michigan and Georgia properties within a two-week period - mirroring the practices identified in the Fed's own research.

Federal Housing Finance Agency Director Bill Pulte brought the allegations to light, highlighting the central bank's paradoxical position of investigating industry-wide fraud while one of its governors faces similar accusations.