Real Estate
Fannie Mae Blames Multifamily Fraudsters in Part for Setting Aside $752 Million
- Fannie Mae sets aside $752 million partly for suspected fraud
- Government-sponsored lender has previously cautioned investors
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Fannie Mae set aside $752 million for credit losses in its apartment complex lending business in part because of fraud or suspected fraud, denting profits amid an industrywide scrutiny of borrowers.
“We have discovered instances of multifamily lending transactions in which one or more of the parties involved engaged in mortgage fraud or possible mortgage fraud,” the firm said in its annual report released Friday. The $752 million credit loss provision was for the year ended Dec. 31, following $495 million and $1.25 billion in 2023 and 2022, respectively, according to the report.