Fannie Mae Launches AI Fraud Detection Technology Partnership with Palantir

Rhea-AI Summary

Fannie Mae (FNMA) has partnered with Palantir to launch an AI-powered Crime Detection Unit aimed at combating mortgage fraud in the U.S. housing market. The initiative leverages Palantir's advanced AI and machine learning technology to detect suspicious activities and anomalous transactions across millions of datasets. As the largest holder of residential mortgage debt in the U.S., with over $4.3 trillion in assets, Fannie Mae manages approximately 25% of single-family mortgages and 20% of multifamily mortgages. The company expects this new technology partnership to save millions in future fraud losses while enhancing safety and soundness in the housing system.

Positive

• Partnership with leading AI company Palantir to enhance fraud detection capabilities
• Expected to save millions in future fraud losses for the U.S. housing market
• Implementation of advanced pattern detection across millions of datasets
• Strengthened protection for lenders, homebuyers, and taxpayers

Negative

• Actual results and impact may differ from expectations as per forward-looking statements
• Implementation and integration costs not disclosed
• Potential privacy concerns regarding AI-powered surveillance of mortgage data

Fannie Mae's Crime Detection Unit Will Boost Safety and Soundness and Save Millions by Preventing Future Fraud Losses in U.S. Mortgage Market

WASHINGTON, May 28, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) announced the launch today of its AI-powered Crime Detection Unit in partnership with leading AI software company Palantir. The new partnership will expand Fannie Mae's fraud detection capabilities with leading AI-enabled financial crimes data science and investigations technology. This foundation will power Fannie Mae's Crime Detection Unit, a new platform that the company believes will help detect and prevent mortgage fraud with speed and precision never before seen in the U.S. housing market. Fannie Mae's Crime Detection Unit's capabilities will save the U.S. housing market millions in future fraud losses.

Palantir designs and deploys artificial intelligence and machine learning technology used by government agencies and commercial clients. The company's technology provides expansive monitoring 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," said Fannie Mae Chairman William J. Pulte.

"By integrating this leading AI technology, we will look across millions of datasets to detect patterns that were previously undetectable," said Priscilla Almodovar, Fannie Mae's president and chief executive officer. "This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers, and taxpayers."

Fannie Mae has more than $4.3 trillion in assets and plays a foundational role in the U.S. housing market. The company is the largest holder of residential mortgage debt outstanding in the country, owning or guaranteeing an estimated one in four single-family mortgages and 20 percent of multifamily mortgages in the U.S.

"This partnership with Fannie Mae will set off a revolution in how we combat mortgage fraud in this country. We are bringing the fight directly to anyone who attempts to defraud our mortgage system and exploit hardworking Americans," said Alex Karp, co-founder and chief executive officer of Palantir Technologies.

This release includes forward-looking statements, including statements about Fannie Mae's and Palantir's plans and expectations with respect to the Crime Detection Unit and the impact of the Crime Detection Unit on Fannie Mae's business and financial results, and on the U.S. housing market. Actual results and events may turn out to be very different from these statements. Factors that may lead to different results and events are discussed in "Forward-Looking Statements" and elsewhere in the company's quarterly report on Form 10-Q for the quarter ended March 31, 2025, and in "Risk Factors," "Forward-Looking Statements" and elsewhere in the company's Form 10-K for the year ended December 31, 2024. The company's forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under the federal securities laws.

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SOURCE Fannie Mae

FAQ

What is Fannie Mae's new AI fraud detection partnership with Palantir?

Fannie Mae has partnered with Palantir to launch an AI-powered Crime Detection Unit that will use advanced machine learning technology to detect and prevent mortgage fraud in the U.S. housing market with unprecedented speed and precision.

How much of the U.S. mortgage market does Fannie Mae (FNMA) control?

Fannie Mae controls approximately 25% of single-family mortgages and 20% of multifamily mortgages in the U.S., with over $4.3 trillion in assets.

What are the expected benefits of FNMA's new Crime Detection Unit?

The Crime Detection Unit is expected to save millions in future fraud losses, increase safety and soundness in the housing system, and protect lenders, homebuyers, and taxpayers by detecting suspicious activities and patterns.

How will Palantir's AI technology help Fannie Mae detect mortgage fraud?

Palantir's AI technology will analyze millions of datasets to detect anomalous transactions, activities, and behaviors, helping identify suspicious patterns that were previously undetectable.

Who are the key executives involved in the Fannie Mae-Palantir partnership?

The key executives include William J. Pulte (Fannie Mae Chairman), Priscilla Almodovar (Fannie Mae CEO), and Alex Karp (Palantir Co-founder and CEO).