MPF Program Fraud Alert: Appraiser Identity Theft
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 identified a significant number of mortgage loans involving appraisals that were completed by an unlicensed appraiser unlawfully using the identities of other actively licensed appraisers. The identified loans were originated between 2021-2023. There is no evidence that the appraisers whose identities were used were aware of or involved in the activity.
This Fraud Alert highlights red flags and general steps Originators can take to detect and prevent fraud.
Note: At this time, no MPF Xtra mortgage loans were identified as involved in this scenario.
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.
Click here to view Fannie Mae’s fraud alert.
- MPF Marketing Bulletin 2024-02