The Office of Federal Housing Enterprise Oversight, or OFHEO, has finalized a regulation requiring mortgage giants Fannie Mae and Freddie Mac to report mortgage fraud in a timely fashion, OFHEO said today.

The regulation has been finalized for publication in the Federal Register and will be effective 30 days from publication, OFHEO said in a statement.

Mortgage fraud continues to increase in the United States, with the number of suspicious activity reports to the Federal Bureau of Investigation in 2004 almost triple those in 2003, according to a report by the FBI released in May.

In addition to requiring reporting of fraud to OFHEO, the regulation requires the two government-sponsored enterprises to maintain adequate internal controls, procedures, and training programs to assure an effective system to detect and report actual or possible mortgage fraud.

OFHEO’s examination force will review information received, which will help in assessing internal controls, security efforts, management of risks, and other factors at the Enterprises. In addition, OFHEO is developing a process for sharing relevant mortgage fraud information with other federal agencies, the overseeing body said.

“The regulation makes transparent OFHEO’s oversight of Enterprise initiatives to detect mortgage fraud at the earliest possible time,” said OFHEO Acting Deputy Director Alfred Pollard. “This oversight coupled with Enterprise efforts will send a clear message that fraud will be actively resisted by the companies and their regulator,” Pollard said.

Complete text of the final regulation can be found at


Send tips or a Letter to the Editor to or call (510) 658-9252, ext. 140.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription