Published by REALTOR.com | April 16, 2025
The Trump administration's top mortgage regulator has vowed to "root out frauds and cheats" in the mortgage market after launching a tip line to report deceitful home loan applications.
Federal Housing Finance Agency Director William Pulte announced the tip line last week, saying “anyone and everyone can submit tips on anyone fraudulently filling out mortgage [applications]” by emailing FraudTips@fhfa.gov.
“There is no room for fraud in our mortgage markets. None. We will continue to root out frauds and cheats wherever we find it. No one and no company is above the law—no one,” Pulte wrote in a post on the social media platform X.
The FHFA oversees Fannie Mae and Freddie Mac, and is charged with ensuring that the two government-backed mortgage giants provide stability and liquidity to the mortgage market.
The agency’s Office of Inspector General routinely assists federal law enforcement in the investigation of mortgage fraud cases. Lying on a mortgage application, including misrepresentations about the buyer’s income or the home being purchased, is a federal crime that can carry stiff penalties.
“FHFA is committed to combating fraud and encourages the public to report any suspected criminal activity related to mortgage fraud,” a spokesperson for the agency tells Realtor.com®. “Our mission remains focused on strengthening the U.S. housing economy for all Americans.”
Pulte’s fraud tip line announcement came a day after he sent a letter to the Justice Department recommending a criminal investigation into New York Attorney General Letitia James over allegedly falsifying information on mortgage applications.
The letter accuses James of misrepresenting a Virginia home she purchased in 2023 as her primary residence in order to obtain a more favorable mortgage rate, and of underreporting the number of units in a Brooklyn property she purchased in 2001, according to a copy of the letter obtained by the New York Post.
“Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte wrote in the letter to Attorney General Pam Bondi, dated April 14.
In 2023, James famously prosecuted Trump in civil court over alleged fraudulent loan applications made by his company, a case that ended in a $454 million judgment against the Trump Organization.
