Freddie Mac Fraud Prevention and the Exclusionary List
I do have to give Freddie Mac (Federal Home Loan Mortgage Corporation) credit for implementing programs to prevent fraud on consumers and to prevent Freddie Mac from purchasing non-investment quality loans.
In my experience, however, the Exclusionary List casts such a wide net that it often traps those who may have innocently created a non-investment quality loan (or multiple loans) landing them on the Exclusionary List.
On its website, Freddie Mac lists many of their resources that borrowers can use to discover, report and prevent fraud, including:
- A hotline (1-800 4 FRAUD 8, or 1-800-437-2838)
- Quality Control web page
- Freddie Mac Fraud Mailbox
- Freddie Mac’s Mortgage Fraud Web pages
- Fraud Prevention Toolkit
You can find all of these resources on Freddie Mac’s web site (or type “Freddie Mac Mortgage Fraud Prevention Resources” into Google). On their website, you can also find different government programs and non-Freddie Mac resources to discover, report and prevent fraud.
In describing the Exclusionary List, Freddie Mac says, “Exclusionary List provided for Seller/Servicers only, and available through various Freddie Mac single-family systems, including Loan Selling Advisor℠ Loan Product Advisor ® and in the ‘Originate and Underwrite’ and ‘Asset Management’ sections of FreddieMac.com/Multifamily. Seller/Servicer may obtain additional information on how to access the Exclusionary List by calling Customer Support (800-FREDDIE)”
This supports Freddie’s restriction that the Exclusionary List be kept confidential. “Seller/Servicer” means a seller or servicer of a loan product, rather than the seller of property. Accordingly, and in our experience, only mortgage originators have access to the List. Of course, if you find yourself on the List, you can ask Freddie for more information directly, or contact our office to help you get that information from Freddie, and give you strategies and information to send a letter to Freddie requesting that you come off of the Exclusionary List.
For more information on the Freddie Mac Exclusionary List, or if you find yourself on the List, please contact us to schedule a free initial consultation to discuss your options at 727-261-0224 or email me directly at shawn@yesnerlaw.com. Please also subscribe to the Crushing Debt Podcast, on Apple Podcasts, Spotify, and other podcast players, including Amazon Echo (“Alexa”) for more free information about these topics.
Shawn M. Yesner, Esq., is the host of the Crushing Debt Podcast and founder of Yesner Law, P.L., a Tampa-based boutique real estate and consumer law firm that helps clients eliminate the financial bullies in their lives. We assist clients with asset protection, the sale and purchase of real property, Chapter 7 liquidation, Chapter 13 reorganization, bankruptcy, foreclosure defense, debt settlement, landlord/tenant issues, short sales, and loan modifications in Tampa, Westchase, Odessa, Oldsmar, Palm Harbor, Clearwater, Pinellas Park, Largo, St. Petersburg, and throughout the greater Tampa Bay area.
