The Office of Federal Housing Enterprise Oversight (OFHEO) has finalized for publication in the Federal Register a regulation requiring Fannie Mae and Freddie Mac to report mortgage fraud or possible mortgage fraud to OFHEO in a timely fashion. The regulation also requires that Annie Mae and Freddie Mac maintain adequate internal controls, procedures, and training programs to assure an effective system to detect and report actual or possible mortgage fraud. The regulation will be effective 30 days from publication. OFHEO has also finalized a Policy Guidance detailing procedures for implementing the regulation.
Complete text of the final regulation can be found at:
www.ofheo.gov/media/pdf/finalmortfraud72505.pdf
And the Policy Guidance at:
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.