The day was started with the accusations that Fed Gov. Lisa Cook was accused of mortgage fraud. More specifically, she was accused of purchasing two properties within a short period of time, and saying that both properties would be her primary residence. If you by a second property, it is largely considered a greater risk and therefore subject to a higher interest rate.
I don't know the details and according to the letter to Atty. Gen. Bondi, the FHFA Director Pulte accused Cook of the infractions. In other words who knows what actually happened then and subsequently. Did she sell one property a month later? Did she sell one year later?
More importantly what are the normal penalties for such action.
If I did it, what would be my penalty? Would I lose my job? Would it prevent me from doing my job?
I queried ChatGPT and asked what the penalties are for falsely claiming a home as your primary residence. Below are the responses:
1. Mortgage Fraud (Lenders / Loan Applications)
If you falsely claim a home is your primary residence to get a lower mortgage rate or lower down payment, that is mortgage fraud.
Penalties can include:
Loan acceleration (lender demands immediate repayment).
Foreclosure if repayment isn’t possible.
Fines and restitution.
In severe cases, criminal charges — mortgage fraud is a federal offense, punishable by up to 30 years in prison and $1 million fine, though that’s for large-scale or willful fraud. Most cases historically result in financial penalties or loan consequences, not prison.
2. Tax Treatment of Capital Gains on a Primary Residence
The IRS allows you to exclude up to $250,000 ($500,000 married) of capital gains if the home was your primary residence for at least 2 of the past 5 years.
If you misrepresent that a property was your primary residence:
The IRS can disallow the exclusion.
You’d owe back taxes, interest, and penalties on the capital gains.
Civil fraud penalties can be up to 75% of the underpaid tax.
Criminal fraud charges are rarer but possible if misrepresentation was willful.
3. Property Tax / Homestead Exemptions
Some states/counties offer lower property tax rates if the home is a primary residence.
If misrepresented:
Back taxes and interest are due.
Some jurisdictions add a penalty of 10–50% of the unpaid taxes.
Repeat or deliberate fraud can bring criminal charges at the state level.
✅ Summary:
Lenders → mortgage fraud (serious, possible criminal).
IRS → lose capital gains exclusion + taxes/penalties.
Local property tax → back taxes + fines.
In most historical cases, the biggest impact is financial (back taxes, penalties, loss of benefits) — jail time is usually reserved for larger, willful fraud schemes.
What happened? What were the implications? Has she continued to make the payments on both places?
That is what lawyers are for. One can assume that she will have increased lawyer bills.
Can Trump fire her?
Trump wanted to fire Powell one Monday morning after a few extra bogeys on Sunday, but figured out it wasn't possible. Nevertheless, its worth a try. He did fire the BLS Commissioner, but that was more job-related and who knows, there likely was some payoff that made sense for her to get out of the frying pan. I don't think of BLS Commissioner has the ability of say that the Fed Gov. were Fed chair to earn post position income.
Chairman Powell seems to be in it for the long haul especially since he's been accused of doing his job, or seeing through a rebuild that was appropriated despite the high costs.
This article was written by Greg Michalowski at investinglive.com.Hence then, the article about if cook is guilty of mortgage fraud what are the normal penalties was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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