Mortgage Fraud Prevention

Stop fraud before it disrupts your business

The Fannie Mae Mortgage Fraud Investigations (MFI) team dedicates its efforts to identifying fraudulent activities and sharing information that supports and educates our industry partners. Our goal is to help industry professionals become more proactive in the fight against mortgage fraud.

Mortgage fraud is a material misstatement, misrepresentation, or omission relied upon to fund or purchase – or not to fund or purchase – a mortgage, including a mortgage associated with a mortgage-backed security or similar financial instrument. 

We rely on our lender partners and other members of the mortgage industry for identification of potential mortgage fraud. Have information about mortgage fraud? Complete and submit the Suspected Mortgage Fraud Report or call 1-800-2FANNIE (1-800-232-6643). 

What's New

Alert: Borrower Income Concerns on TPO Loans (Oct. 2020)

Our Mortgage Fraud Investigations team has observed misrepresented incomes on loans that were originated by third-party originators (TPOs) primarily based in Southern California.

Fraud Alerts

Fannie Mae’s MFI team alerts the industry about potential and active mortgage fraud scenarios.

Red Flags & Helpful Tools

These resources will help you notice patterns and circumstances related to fraud. Use these tools to detect, protect from, and deter criminal activities.

Learn more about mortgage fraud

Anti-fraud partnership training series

Our anti-fraud training tutorials offer preventative measures to keep your team informed and able to detect and prevent fraud. The tutorials can support existing policies, processes, and procedures and encourage new and more effective approaches.

Types of mortgage fraud

The FBI has prioritized mortgage fraud into two distinct areas: fraud for profit and fraud for housing.

Fraud for profit

Fraud for profit occurs when industry professionals misuse their expertise to participate in fraudulent activity in effort to maximize cash and equity on a loan transaction. These industry insiders include licensed and non-licensed appraisers, attorneys, loan originators, mortgage bankers, and mortgage brokers.

Fraud for housing

Fraud for housing is committed by borrowers who participate in illegal activities in an attempt to either acquire or maintain homeownership. They manipulate information and industry professionals.

Fraud can be committed by the homebuyer, seller, or lender, and often relates to deceoption involving income, debt, credit, and/or property value.