Fannie Mae Stung By Multifamily Fraud, Makes Loss Provision (1)

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.

Fannie Mae said it’s continuing to investigate ...