FHFA Director Bill Pulte Calls on Americans to Report Mortgage Fraud

It’s not Crime Stoppers, but Bill Pulte is involving the masses in his thunderous quest to root out fraud in the mortgage market.

The director of the Federal Housing Finance Agency announced the advent of a tipline to report mortgage fraud, National Mortgage News reported. Pulte posted an email address on social media where consumers can submit tips regarding illicit activity.

“We will be establishing a tip line where anyone and everyone can submit tips on anyone fraudulently filling out mortgage apps,” Pulte wrote on X.

Details beyond the short message Pulte put out are scarce. It’s not clear who will be monitoring the email address and it’s also unclear what agency or entity would investigate the submitted tips. Typically, the FHFA’s Office of Inspector General would investigate mortgage fraud claims, which would then be prosecuted by the Department of Justice.

The FHFA did not respond to a request for comment from the publication.

One in every 123 home loan applications had indications of fraud in the second quarter, according to a report from CoreLogic. Additionally, mortgage defect rates increased in the first half of last year, according to Aces Quality Management, though that isn’t necessarily indicative of mortgage fraud.

But fraud has become a major focus of Pulte’s in his chaotic, brief tenure leading the FHFA.

Pulte recently fired 100 employees at Fannie Mae for alleged “unethical conduct.”

Three days after he was sworn in, Pulte appointed himself chair of both Fannie Mae and Freddie Mac and removed 14 board members at the agencies.

Fannie Mae, which buys loans from private lenders and securitizes them to sell to investors, identified a $752 million credit loss because of fraud or suspected fraud at the end of 2024.

According to an internal Fannie Mae email in March 2024 obtained by Real Tactics Pro, the agency warned its exposure to just eight sponsors partaking in fraud surpassed $700 million; those sponsors are now on the agency’s blacklist.

— Holden Walter-Warner