The Federal Housing Finance Agency asked Congress for expanded authority to take on fraud in the housing finance market.
Background: In its latest report to Congress, the FHFA noted it is statutorily required to obtain reports from its regulated entities if they discover or suspect they have purchased or sold a fraudulent loan or financial instrument, and the FHFA may refer suspected fraud to other appropriate state and federal agencies.
Recommendations: In the report, the FHFA recommended statutory amendments directing FHFA to make appropriate referrals on discovering suspected fraud and authorizing the agency to bring civil enforcement actions against individuals suspected of engaging in mortgage fraud.