FAQ – Mortgage Fraud Prevention Resources

March 30, 2023 BY MQMR Blogger

Question: What are some useful resources and/or job aids mortgage lenders should share with their employees to assist in training on how to identify and prevent mortgage fraud?


Answer: It is critical for mortgage lenders to continuously train staff on the detection and prevention of mortgage fraud.  Employees should be familiar with the types of red flags they are likely to encounter when fulfilling their position responsibilities and understand that suspicion of mortgage fraud must always be reported to the Compliance Officer or other designated individuals within the company.  
There is a wealth of resources mortgage lenders can utilize to assist in training employees in this area.  Two key resources include Fannie Mae and Freddie Mac.  It would be considered a best practice recommendation for mortgage lenders to require employees to review and familiarize themselves with the following:


Fannie Mae Mortgage Fraud Prevention webpage – includes a fraud alerts section sharing potential and active mortgage fraud scenarios, as well as a common red flags list and fraud schemes section.  The webpage also provides an explanation of Desktop Underwriter's potential red flag messages and anti-fraud tutorials.   

Freddie Mac Fraud Prevention webpage – includes a fraud prevention spotlight highlighting specific and current fraud scenarios, as well as a fraud prevention and best practices page.