Government-sponsored enterprise Fannie Mae has launched a crime detection unit that will use AI-driven fraud detection software from Palantir Technologies.
The new partnership will expand Fannie Mae’s fraud detection capabilities with AI-enabled financial crimes data science and investigations technology, the company says in a release.
Using AI, Fannie Mae will be able to detect and prevent mortgage fraud with speed and precision never before, the company claims. It will save the U.S. housing market millions in future fraud losses, it says.
Palantir designs and deploys artificial intelligence and machine learning technology used by government agencies and commercial clients. The company’s technology provides expansive monitoring for anomalous transactions, activities and behaviors to help companies detect suspicious activity and trigger investigative action.
“No one is above the law,” says William J. Pulte, director of the Federal Housing Finance Agency, regulator of Fannie Mae. “In partnership with Palantir, Fannie Mae’s Crime Detection Unit will increase safety and soundness by rooting out bad actors in our housing system. This cutting-edge AI technology will help us find criminals who try to defraud our system.”
“By integrating this leading AI technology, we will look across millions of datasets to detect patterns that were previously undetectable,” adds Priscilla Almodovar, president and CEO of Fannie Mae. “This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers, and taxpayers.”
Fannie Mae has more than $4.3 trillion in assets and plays a foundational role in the U.S. housing market. The company is the largest holder of residential mortgage debt outstanding in the country, owning or guaranteeing an estimated one in four single-family mortgages and 20 percent of multifamily mortgages in the U.S.
“This partnership with Fannie Mae will set off a revolution in how we combat mortgage fraud in this country,” says Alex Karp, co-founder and CEO of Palantir Technologies. “We are bringing the fight directly to anyone who attempts to defraud our mortgage system and exploit hardworking Americans.”