Fannie Trying to Tackle Mortgage Fraud

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00000267-fannie-trying-to-tackle-mortgage-fraud/

Housing finance giant Fannie Mae is taking steps to prevent mortgage fraud after a case involving a North Carolina lender cost the government $38 million, a company executive told Congress Thursday.

The case involves the sale of fraudulent mortgages to the Government National Mortgage Association, or Ginnie Mae, by First Beneficial Mortgage Corp.

Fannie Mae has said it was warned that the North Carolina lender, from which it had accepted money, was engaging in a scheme that defrauded Ginnie Mae, a federal housing finance agency.

In December, Fannie Mae agreed to forfeit $7.5 million in a deal with the Justice Department. The federal agency had accused Fannie of accepting money it knew had been lost by Ginnie Mae in a fraud scheme.

For this complete story, please visit Fannie Trying to Tackle Mortgage Fraud.

Fannie Trying to Tackle Mortgage Fraud

Unknown Author

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