Fannie Mae To Deploy AI Driven Fraud Detection Unit As Chatter About Privatizing Fannie And Freddie Grows
Fannie Mae To Deploy AI driven fraud detection units. Here are the key take aways:
- Fannie Mae announced it will deploy a new AI driven fraud detection unit to help sniff out mortgage fraud.
- AI technology company Palantir will supply the software for the new unit at the GSE.
- The move comes amid further discussion of the government making Fannie Mae and Freddie Mac public companies.
- FHFA Director William (Bill) Pulte contended taking Fannie Mae and Freddie Mac public could help bring down mortgage rates.
Federal Housing Finance Agency (FHFA) Director Bill Pulte has also termed the project as, “something big on mortgage fraud.”
Fannie Mae said last week, it has launched an AI-powered Crime Detection Unit. They have also partnered with software firm Palantir.
The announcement came amid the chorus of Washington elites of privatizing Fannie Mae and Freddie Mac. This would allow the GSE’s shares to traded on a major stock exchange.
Fannie Mae has more than $4.3 trillion in assets. It also owns or guarantees an estimated one out of four single-family mortgages in the U.S.
The Fannie Mae-Palantir partnership expands the government-sponsored enterprise’s (GSE) fraud detection capabilities.
Fannie Mae believes AI will help prevent mortgage fraud “with speed and precision never before seen in the housing market.”
As a result, the new Crime Detection Unit will prevent millions of dollars in future fraud losses.
Palantir designs and deploys AI tech used by government agencies and commercial clients. The technology monitors for “anomalous transactions, activities, and behaviors” to help detect suspicious activity.
Potentially Publicly Traded Fannie Mae & Freddie Mac
The announcement of tighter antifraud efforts at Fannie Mae has brought more chatter about privatizing Fannie Mae and Freddie Mac.
FHFA pulled Fannie Mae and Freddie Mac stock from trading on the NYSE on July 8, 2010.
The question seems to be what would happen to the government backing of the two GSEs? President Trump addressed that point on Truth Social on May 27.
The President reiterated that Fannie Mae and Freddie Mac “are now doing very well,” adding his well-known MAGA tagline.
FHFA Director Pulte responded the morning following President Trump’s Truth Social post. Pulte commented, “Thank goodness we have a President who cares and loves Fannie Mae and Freddie Mac!”
He also pointed to what he described as major housing affordability issues during former President Joe Biden’s time in office.
