Regulator calls for public tips to expose fraudulent home loan applications
Federal Housing Finance Agency (FHFA) director Bill Pulte has announced the launch of a public mortgage fraud tip line, encouraging individuals to report suspected fraudulent activity related to home loan applications.
“There is no room for fraud in our mortgage markets. None,” Pulte wrote Tuesday on the social media platform X. “We will continue to root out frauds and cheats wherever we find it. No one and no company is above the law—no one.”
The new tip line, accessible via [email protected], invites “anyone and everyone” to submit tips about people “fraudulently filling out mortgage [applications],” according to Pulte’s statement.
The FHFA, which oversees mortgage market giants Fannie Mae and Freddie Mac, plays a central role in maintaining liquidity and stability in the housing finance system. Its Office of Inspector General regularly works with federal law enforcement agencies on mortgage fraud investigations. Lying on a mortgage application (including misstatements about income, employment, or occupancy) is a federal crime and can carry significant penalties.
“FHFA is committed to combating fraud and encourages the public to report any suspected criminal activity related to mortgage fraud,” a spokesperson for the agency told Realtor.com. “Our mission remains focused on strengthening the US housing economy for all Americans.”
The announcement comes just days after Pulte revealed the termination of more than 100 employees at Fannie Mae, citing alleged unethical conduct. Though details of the firings were not initially made public, Pulte elaborated during a recent interview with Fox News.
“We found that multiple people were working two jobs. We found some people were working in China and saying that they were working here,” he said. “We also found that they were making donations to the charity, and then they were getting kickbacks, the internal company charity.”
While mortgage fraud was not specifically listed as one of the reasons for those terminations, Pulte characterized the firings as part of a broader effort to eliminate “waste, fraud, and abuse” within the mortgage system under president Donald Trump’s administration.
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“Thanks to him, we were able to go in there and have the air cover to get this stuff done and get fraud out of the system, lower housing costs, and hopefully make housing affordable again in this country,” Pulte added.
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