Fannie, Freddie To Begin Using Loan-Level Identifiers
January 15 2009 - 6:55PM
Dow Jones News
Fannie Mae (FNM) and Freddie Mac (FRE) are now required to
identify the mortgage loans they purchase by originator and
appraiser, in a move aimed at preventing fraud and predatory
lending.
The mortgage finance giants will begin collecting such
"loan-level identifiers" effective for all mortgage applications
dated on or after Jan. 1, their regulator announced Thursday.
"If originators or appraisers have contributed to the incidences
of mortgage fraud, these identifiers allow the enterprises to get
to the root of the problem and address the issues," Federal Housing
Finance Agency Director James B. Lockhart said in a statement.
The new rules were mandated by a federal housing law enacted
last summer. The law also created a national registry for mortgage
brokers and appraisers.
The regulator told the chief executives of Fannie and Freddie
about the new requirement in October, the agency said. -By Jessica
Holzer, Dow Jones Newswires; 202-862-9228;
jessica.holzer@dowjones.com
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