Exclusive: No Evidence of Primary Residence Violation by Fed Gov Lisa Cook, Says Michigan Official

Property Tax Authority Clears Federal Reserve Governor Lisa Cook of Violations

The property tax authority in Ann Arbor, Michigan, has confirmed that Federal Reserve Governor Lisa Cook did not violate any rules regarding tax breaks for a home she declared as her primary residence. This determination was made in response to a request for an investigation into Cook’s property records, which could provide support for her defense against attempts by the Trump administration to remove her from the Federal Reserve board.

City Assessor Jerry Markey stated that there is no reason to believe Cook broke property tax rules. He explained that Cook has lived elsewhere at times and sought permission from Ann Arbor authorities to rent out the Michigan home on a short-term basis. Temporary absence or short-term rentals do not disqualify someone from receiving a tax exemption, according to Markey. “Living elsewhere temporarily does not necessarily make an owner ineligible for a principal residence exemption,” he said.

This clarification comes as the Trump administration accuses Cook of fraud related to mortgages on the Ann Arbor home and another she purchased in Atlanta. Bill Pulte, director of the Federal Housing Finance Agency, has been leading this effort, criticizing Cook on social media and referring the matter to the Department of Justice, which launched an investigation.

The core issue revolves around whether Cook lied to her lenders when obtaining the two mortgages. The Trump administration claims she misrepresented the purpose of the loans, stating they were for primary residences. A primary residence designation can lead to better interest rates and potential property tax discounts. However, it is not guaranteed.

An appeals court was expected to rule on whether Cook can continue her role while the litigation over her removal from the Fed board is ongoing. Regardless of the court’s decision, an immediate appeal to the Supreme Court is anticipated, complicating her status ahead of the Fed's upcoming two-day meeting.

DISCOVER TRENDS previously reported that Cook informed her lender in Atlanta that the property would be a “vacation home” rather than a primary residence. In response, Pulte suggested that this claim could still be fraudulent if Cook later changed her stance. “That is extremely concerning,” Pulte wrote, adding that it could indicate further intent to defraud.

The full extent of Cook’s representations to her lenders remains unclear, including any changes in documentation before the mortgage was finalized. Local officials in Georgia told DISCOVER TRENDS that Cook never declared the Atlanta home as a primary residence for tax purposes.

Cook has consistently denied any wrongdoing. In a recent statement, her attorneys argued that the attempt to remove her is based on selective social media posts from Pulte that do not hold up under scrutiny.

Since securing a mortgage for the Michigan home in 2021, local records show that Cook received approval from the city to rent it out on a short-term basis in October 2022 and again in April 2024. Some cities, including Ann Arbor, require homeowners to obtain a license for short-term rentals.

In April 2025, months before Pulte began publicly accusing her of fraud, Cook sought approval to list the home as a long-term rental. By July, she had enlisted a rental firm to manage the property, according to city officials.

Markey, the Ann Arbor city assessor, noted that Cook has until the end of the year to revoke the tax exemption on the home.

Property tax records in both states, along with Cook’s “vacation home” disclosure in Atlanta, could serve as strong factors in her defense, according to real estate and legal experts. For a conviction of mortgage fraud, prosecutors would need to prove that Cook intentionally deceived her lenders.

Paul Pelletier, a former federal prosecutor who focused on bank fraud, noted that the Justice Department typically only pursues cases where a financial institution suffered significant losses. “This would never have crossed my desk, let alone be prosecuted,” he said regarding the accusations against Cook so far.

Data from Freddie Mac shows that the interest rates on Cook’s two mortgages did not offer significant discounts compared to prevailing rates when she obtained the loans in 2021. Her rate on the 15-year loan for the Michigan property was 2.875%, versus a national range of 2.23% to 2.45%. Similarly, her 30-year loan for the Atlanta property had a rate of 3.25%, compared to a range of 2.93% to 3.04% at the time.