MPF Program Fraud Alert: Identity Theft Ring
Effective Date: Immediately (unless otherwise noted within)
Fannie Mae recently posted a Fraud Alert notifying Originators of potential and active mortgage fraud scenarios. Fannie Mae has observed misrepresented borrower profiles in numerous mortgage loans that indicate identity theft and have allowed perpetrators to abscond with large sums of money at closing. The alert addresses mortgage loans originated in suburban Atlanta, GA, but similar schemes have been identified in other parts of the country.
This Fraud Alert highlights specific hallmarks of the fraud scheme.
PFIs and Servicers should exercise appropriate due diligence when reviewing loan files, ensure appropriate steps are taken to prevent fraud and follow all applicable policies and procedures when suspicious activity is detected.
PFIs and Servicers are reminded that if suspicion of fraud exists, they must follow their organization’s established policies and procedures and the MPF Guides.
Fannie Mae’s fraud alert can be found at: https://singlefamily.fanniemae.com/media/36826/display
- MPF Marketing Bulletin 2023-08