Trump’s efforts to bring down Fed Reserve’s Lisa Cook over alleged mortgage fraud highlights risks to all homeowners

Core Insights - The ongoing allegations of mortgage fraud against Lisa Cook by the Trump administration raise concerns about the public accessibility of mortgage information and its potential misuse against homeowners [1][2] - The accusations extend to other political figures, highlighting a broader scrutiny of mortgage practices and the importance of understanding mortgage fraud [2] Mortgage Fraud Overview - Mortgage fraud involves misrepresentation of information by borrowers during the mortgage application process, such as overstating income or misrepresenting primary residence status [3] - Convictions for mortgage fraud are relatively low, with fewer than 3,000 Americans convicted over the past 12 years, including only 38 in 2024 and 34 in 2023, compared to approximately 100 million mortgage loans issued [3] Fraud Risk Assessment - Despite low conviction rates, the potential for mortgage fraud is considered high, with a reported 7.3% year-over-year increase in fraud risk according to a survey by Cotality [4] - High interest rates and housing affordability challenges are identified as factors contributing to an increased risk of mortgage fraud in the current market [4]