The signs were there. Reports of instances of alleged multifamily loan fraud through Freddie Mac and Fannie Mae. The latter finally offered an admission of the problem in its latest 10-Q filing with the Securities and Exchange Commission.
"We have discovered instances of multifamily lending transactions in which one or more of the parties involved engaged in mortgage fraud or possible mortgage fraud, and we continue to investigate additional multifamily lending transactions in which we suspect fraud may have occurred," they wrote.
In June 2024, the Department of Justice prosecuted Aron Puretz, who "pleaded guilty today to engaging in an extensive, multi-year conspiracy to fraudulently obtain over $54.7 million in loans and to fraudulently acquire multifamily and commercial properties." Freddie Mac was one of the targets.
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