Fannie Mae unveils AI crime unit with Palantir to curb fraud

Published 28/05/2025, 16:22
Fannie Mae unveils AI crime unit with Palantir to curb fraud

WASHINGTON - Fannie Mae (OTCQB: FNMA), the leading source of residential mortgage credit in the U.S. secondary market, has today announced the launch of its AI-powered Crime Detection Unit, developed in partnership with AI software company Palantir Technologies. The new unit is designed to enhance the detection and prevention of mortgage fraud, potentially saving the U.S. housing market millions in fraud losses. The announcement comes as Fannie Mae’s stock has shown remarkable performance, with a 603% return over the past year and a 221% gain year-to-date, according to InvestingPro data.

The collaboration with Palantir will leverage artificial intelligence to monitor and analyze vast datasets for irregular patterns, aiming to identify and halt fraudulent activities more effectively. Fannie Mae’s Chairman, William J. Pulte, emphasized the importance of the initiative, stating that it will increase the safety and soundness of the housing system by targeting bad actors.

Priscilla Almodovar, president and CEO of Fannie Mae, explained that the integration of AI technology would allow the company to scrutinize millions of data points to uncover previously undetectable fraudulent patterns. This measure is expected to reinforce the integrity of the mortgage market for lenders, homebuyers, and taxpayers alike.

Fannie Mae, with over $4.3 trillion in assets and a market capitalization of $65.9 billion, is a cornerstone of the U.S. housing market, owning or guaranteeing about one in four single-family mortgages and 20 percent of multifamily mortgages in the country. The establishment of the Crime Detection Unit marks a significant stride in the company’s efforts to combat mortgage fraud. With annual revenue of $30.44 billion and an overall Financial Health Score rated as "GOOD" by InvestingPro, the company maintains a strong position in the mortgage market. Discover more insights about Fannie Mae and 1,400+ other stocks through comprehensive Pro Research Reports, available exclusively on InvestingPro.

Alex Karp, co-founder and CEO of Palantir Technologies, expressed his view that the partnership would revolutionize the fight against mortgage fraud in the U.S., taking a proactive stance against fraudulent activities in the mortgage system.

While the press release contains forward-looking statements regarding the expected benefits of the Crime Detection Unit to Fannie Mae’s operations and the housing market, it also cautions that actual results could differ materially. With a beta of 1.87 and notably volatile stock price movements, investors should note that InvestingPro analysis indicates the stock is currently trading above its Fair Value. The company has stated that it does not intend to update any forward-looking statements unless required by federal securities laws.

This news is based on a press release statement from Fannie Mae.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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