We noted, in December of 2021, that my wife and I bought a house. No, we didn’t buy it for ourselves, but for my wife’s sister, as she was retiring back to the Bluegrass State, and couldn’t really afford to do it herself. When we croak, it’ll be inherited by our two daughters, and my sister-in-law’s son.
Fortunately, we bought it in a small town without the ridiculous prices in larger cities — it would probably have cost $100,000 more in Lexington — and before Bidenflation hit interest rates. Alas! we couldn’t just pay for it in cash, as we did for our present home, but had to get a mortgage. And during the negotiations for the mortgage loan, when I mentioned that it was a rental house, I was informed that the mortgage rate for a non-primary residence would be one percentage point higher, while I might have thought ‘darn’ and ‘heck’ and even ‘shoot!’ we nevertheless didn’t try to list it as a primary residence, because that would have been a lie.
Lisa Cook is a well-connected former academic who currently serves on the Federal Reserve Board of Governors — currently serves perhaps being outdated, in that President Donald Trump is trying to fire her — with a guesstimated net worth if $1.1 million to $2.7 million. Dr Cook apparently declared both of her homes as her primary residence, supposedly to get the interest rate down. If Mrs Pico and I, who have a net worth of much less than Dr Cook and her husband, can tell the truth and bite the bullet on the higher interest rate, why can’t wealthier people?
But this is the part which really pisses me off. From The New York Times:
Trump Is Claiming Mortgage Fraud to Attack Enemies. Is Your Information Public?
After President Trump accused a Federal Reserve governor of mortgage fraud, everyday citizens are waking up to just how much information is out there.
by Ron Lieber and Tara Siegel Bernard | Thursday, August 28, 2025 | 10:00 AM EDT
Politicians are using mortgage data against their enemies, so it’s time to figure out how much of it is available and what law-abiding citizens can do to shield it from prying eyes.
On Monday, President Trump said he was removing Lisa Cook from the Board of Governors of the Federal Reserve. He has accused her of declaring both of her homes as her primary residence, which can be a form of mortgage fraud given that interest rates are often higher for vacation homes or investment properties. . . . .
Bill Pulte, the director of the Federal Housing Finance Agency, who asked the Department of Justice last week to investigate Ms. Cook, suggested this week that she wouldn’t be the last person to face such charges.
“There is too much mortgage fraud in Chicago,” he said on social media, calling out the city where Mr. Trump has threatened to send troops. Mr. Pulte also asked for tips on fraud from the public.
Ms. Cook also wasn’t the first public figure to come in for this scrutiny. Other Trump adversaries, including Letitia James, the attorney general of New York, and Senator Adam Schiff, Democrat of California, are facing similar inquiries. The Texas attorney general, Ken Paxton, a Republican, has also had to answer for his housing records.
Dr Cook is, of course, suing the President over her firing, saying that he’s a big meanie-hoonie, and it’s “illegal and unprecedented” for him to fire her “for cause“. Dr Cook listed two separate residences as her primary residence in 2021, before President Joe Biden appointed her to the Board of Governors in 2022.
Someone who looks a lot like me starting the bathroom renovation at the rental house.
But if you read further, you’ll see that the meat of the article is telling people what information is publicly available at the county clerk’s office, in the property deed of trust or filed mortgage, and that it is public information; anyone can look it up.
The article notes things like primary residences, whether the home is a rental or second home, of, in my case, whether it has a property-tax-saving “homestead exemption”, something we have on our real residence but which we did not claim for the rental house, because that would also be illegal.
The thrust of the article is informing readers what they can do to restrict the publicly available information, or, simply put, how to better commit mortgage fraud.
My wife and I are retired, and we were working-class throughout our careers. A lot of working-class people have bought more than one home, primarily to use as rental income sources, which my wife and I are doing, though the entirety of the rental payments are used for paying off the mortgage; we’re not making a profit off of this. [1]Full disclosure: we bought our current home in 2014, as our retirement home, three years before we moved here, and we rented it out, making a small profit, but we didn’t have to make any … Continue reading
But the people like Dr Cook, who have two residences they use themselves? The people with the money for vacation homes or the hoitiest and the toitiest of summer homes aren’t working-class people. They are the people who have connections in government and can afford the extra interest percentage point, and I admit that I have very little sympathy for those committing fraud to save what, for them, are a few bucks. And that The New York Times is trying to help some of their readers commit mortgage fraud is just plain wrong.
References
| ↑1 | Full disclosure: we bought our current home in 2014, as our retirement home, three years before we moved here, and we rented it out, making a small profit, but we didn’t have to make any “homestead exemption”, because we were a bit too young to qualify for it at the time, or “primary residence” claims, because we bought it for cash, and had no mortgage on it. |
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