If Cook is responsible of mortgage fraud what are the traditional penalties?

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)

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

✅ 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.