Artificial intelligence (AI) is being leveraged by Fannie Mae and private sector partner Palantir in the form of an AI-powered Crime Detection Unit.
Palantir, an AI technology provider, has partnered with the government-sponsored enterprise to help fight mortgage fraud at the national level and reduce cybercrime-related financial losses. The partnership and resulting Crime Detection Unit were announced on May 28.
According Fannie Mae, the new partnership will enhance Fannie’s existing fraud detection with advanced AI technology, supporting Fannie Mae’s Crime Detection Unit, ideally predicting and preventing mortgage fraud and saving millions in losses. Palantir’s technology will allow Fannie Mae to more effectively monitor for anomalous transactions, activities and behaviors to help companies detect suspicious activity and trigger investigative action.
“No one is above the law. In partnership with Palantir, Fannie Mae’s Crime Detection Unit will increase safety and soundness by rooting out bad actors in our housing system. This cutting-edge AI technology will help us find criminals who try to defraud our system,” Fannie Mae Chairman and Federal Housing Finance Agency Director Bill Pulte said in a release.
“By integrating this leading AI technology, we will look across millions of datasets to detect patterns that were previously undetectable,” Priscilla Almodovar, Fannie Mae president and CEO, added. “This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers, and taxpayers.”
Fannie Mae holds more than $4.3 trillion in assets and plays an essential role in the U. S. housing market. It holds or guarantees one in four single-family mortgages and 20 percent of multifamily mortgages in the country.