F
ederal Reserve Governor Lisa Cook is suing President Donald Trump after he announced her termination, citing mortgage fraud allegations. A judge will consider her request for a preliminary injunction while the case unfolds in court. Meanwhile, the Federal Housing Finance Agency (FHFA) has approved Rocket Companies' $9.4 billion acquisition of Mr. Cooper, and the Consumer Financial Protection Bureau (CFPB) is proposing a new definition for "risks to consumers" that could narrow its supervision of nonbanks.
Key points:
* The FHFA's approval of Rocket's acquisition of Mr. Cooper allows the deal to proceed, subject to conditions ensuring the safety and soundness of Fannie Mae and Freddie Mac.
* The CFPB has proposed a standard definition for "risks to consumers" in its supervision of nonbanks, which could narrow its focus on misconduct.
* Cook's lawsuit challenges Trump's attempt to remove her from her position as Fed Governor, citing the lack of cause under law.
The outcome of Cook's lawsuit and the CFPB's proposal could have significant implications for the Federal Reserve's independence and the mortgage market.
