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The Importance of Reporting Origination Mortgage Fraud

May 9, 2012

From misrepresented assets to fraudulent Social Security numbers and income and employment documents, falsifying qualifying documentation is one of the most frequent types of origination fraud. As a mortgage originator, you are on the front lines of identifying mortgage fraud to help protect your organization and your customers. But there is a very important next step: reporting all fraud or possible fraud regarding Freddie Mac loans directly to us. 

In Single-Family Seller/Servicer Guide (Guide) Chapter 7, Section 7.3, you will find guidance that will help you implement the procedures to report mortgage fraud to Freddie Mac. Specifically, you must report any incident where there is reason to believe that fraudulent or possible fraudulent activity has taken place during the origination of a mortgage within 30 days of discovery. Guide Section 7.3 also details certain types of fraud that must be reported immediately.

Fraudulent Mortgage Activity That Must Be Reported to Freddie Mac

Some examples of the types of fraud or possible fraud that you must report to Freddie Mac include:

  • Misrepresentations of borrower identification, employment, income, assets, indebtedness, or property occupancy.
  • Property use or property value misrepresentations.
  • Misrepresentations in the loan package or sale transaction, such as undisclosed seller or other third-party incentives, mortgage purpose, or non-arm's length transactions.
  • Multiple deliveries of the same mortgage.

How to Report Mortgage Fraud to Freddie Mac

As detailed on our Mortgage Fraud website, we have created a form for reporting origination-related mortgage fraud or possible fraud to Freddie Mac. Complete and email the form to You may also submit the information required in the form via fax or regular mail.

  • Fax: 571-382-4883
  • Mail: Attn: Institutional Investigations
    8200 Jones Branch Drive
    MS 263
    McLean, VA 22102-3110

You can report suspicious activity as often as needed and include as many loans as you want on one form. Additionally, please remember that when reporting mortgage fraud to Freddie Mac, you are required to provide all loan party data.

However, for matters that require immediate notification, you must contact the Freddie Mac Fraud Hotline: 800-4FRAUD8.

Once the mortgage fraud is reported to Freddie Mac, we will contact you for more information if needed. By adhering to our fraud-related Guide requirements, including reporting suspicious mortgage activity, we can work together to combat mortgage industry fraud.

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