February 04, 2015

Freddie Mac Updates Lender Resources to Help Combat Mortgage Fraud

Making Housing Affordable

Drawing on the latest mortgage scams, Freddie Mac's fraud investigators have posted an updated Fraud Mitigation Best Practices document to help loan underwriters and mortgage servicers protect themselves, borrowers, Freddie Mac and taxpayers from today's fraud artists.

One of the highlights of the update by Freddie Mac's Financial Fraud Investigation Unit (FFIU) includes breaking out schemes and red flags into easy-to-read sections specific to either underwriting and mortgage servicing.

A separate stand-alone reference for the mortgage screening process gives mortgage professionals an at-a-glance catalog of inconsistencies and "red flags" to watch for in mortgage files.

While updated with the latest information, these are comprehensive documents and the relevance of schemes and related red flags will vary depending on the lending environment.

Both of these updated fraud mitigation resources are available online at Fraud Prevention Resources.

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