The Federal Housing Finance Agency (FHFA), regulator of government-sponsored enterprises Fannie Mae and Freddie Mac, has established a tip line “where anyone and everyone can submit tips on anyone fraudulently filling out mortgage apps,” Bill Pulte, director of the agency, announced recently on X.
“We have been getting some amazing tips,” Pulte says in a follow-up post yesterday. “Thank you everyone, keep them coming. It is going to be Americans protecting Americans that is going to stop this massive rampant fraud we’ve seen in the last 4 years under Biden. We need to and must stop the fraud.”
“As the nation’s housing regulator, U.S. Federal Housing stands ready to ensure the safety of the American housing market,” Pulte says in yet another post.
Pulte encourages the public to “submit any alleged criminal mortgage tips or mortgage fraud tips to FraudTips@fhfa.GOV.”
In addition, he announced that the FHFA, along with Fannie Mae and Freddie Mac, are evaluating ways to “recall loans” that have been obtained fraudulently.
However, it remains unclear who would be held accountable – the lenders who underwrite the loans or the borrowers who fill out the paperwork – or both. It’s also unclear if this means recalling loans where deliberate deception was involved or simple borrower errors.
Last month, Pulte rescinded a series of advisory bulletins and directives implemented by the Biden administration, the most impactful of which was an order terminating special purpose credit programs (SPCPs), which are designed to help economically or socially disadvantaged groups to attain homeownership by allowing lenders to offer certain credit flexibilities, such as special pricing for certain loans.
He also rescinded an advisory bulletin charging the FHFA with enforcement the unfair and deceptive acts or practices (UDAP) regulations.
In February, not long after he was confirmed, Pulte fired Diana Reid, CEO of Freddie Mac, as well as placing Gina Cross, chief operating officer, and Monica Matthews, director of human resources, and other staffers on leave. In addition, he fired about 14 members of Fannie and Freddie’s boards of directors and appointed himself chairman of each. He also reportedly fired about 35 FHFA employees.