May 28 (UPI) — Financial giant Fannie Mae said Wednesday it will launch its AI-powered unit to detect and prevent mortgage fraud in a partnership with AI software company Palantir.
“By integrating this leading AI technology, we will look across millions of datasets to detect patterns that were previously undetectable,” said Fannie Mae’s president and chief executive officer Priscilla Almodovar.
Fannie Mae, which holds more than $4 trillion in U.S. housing market assets, is the nation’s single largest holder of outstanding residential mortgage debt.
The launch of its new artificial intelligence-powered crime detection unit with Palantir seeks to expand Fannie’s ability to sniff out fraud with “leading” scientific and investigative AI-enabled tech.
The Washington-based Fannie Mae says its new capability will prevent and detect fraudulent activity with a “speed and precision” that, according to the company, has “never before” been seen designed to save millions of dollars in future financial losses to fraud in the U.S. housing market.
“This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers and taxpayers,” Fannie’s Almodovar continued.
Fannie Mae, which likewise owns or guarantees roughly one in four single-family mortgages and about 20% of America’s multifamily mortgages, says Palantir’s technology will provide “expansive” monitoring for anomalous transactions, activities and other digital behaviors.
According to Fannie officials, it will not only detect suspicious activity but ultimately will “trigger investigative action.”
“No one is above the law,” Fannie Mae Chairman William Pulte said in a statement.
Palantir was one of eight major tech firms to sign on to then-President Joe Biden’s voluntary commitment in 2023 aimed to ensure AI tech is utilized responsibly.
On Wednesday, its top official said the Fannie Mae partnership will set off “a revolution in how we combat mortgage fraud” in the United States.
“We are bringing the fight directly to anyone who attempts to defraud our mortgage system and exploit hardworking Americans,” says Alex Karp, co-founder and CEO of Palantir Technologies.
