FHFA Debuts Fraud Reporting Initiative

The Federal Housing Finance Agency (FHFA) has announced an initiative to complement current fraud reporting by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

The initiative, called the Suspended Counterparty Program, will require Fannie Mae, Freddie Mac and the Federal Home Loan Banks to notify the FHFA whenever an individual or company with which they do business is adjudicated to have engaged in fraud or other financial misconduct. Likewise, the FHFA will consider information received from other government sources.

The FHFA will determine whether an individual or company should be suspended from doing business with the government-sponsored enterprises as a threat to their safe and sound operations. The program becomes effective Aug. 15.

‘The FHFA is taking this additional step to ensure the regulated entities are not exposed to unnecessary risk from doing business with individuals or businesses with a demonstrated history of fraudulent conduct,’ says the agency.


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