Fannie Mae Teams Up With Palantir For AI-Powered Fraud Detection System

Fannie Mae announced on Wednesday that it has partnered with Palantir Technologies to develop a new artificial intelligence (AI)-powered fraud detection system.

Palantir’s shares traded 1.39% higher at the time of writing.

Announcing its new Crime Detection Unit (CDU), Fannie Mae said this is a new platform to quickly and precisely detect and prevent mortgage fraud in the U.S. housing market.

The company said this partnership will power its CDU with AI-enabled financial crimes data science and investigations technology.

"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.

The company said its new CDU will look through millions of datasets to detect patterns that were previously undetectable, although it did not specify exactly how it works.

"This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers, and taxpayers,” said Priscilla Almodovar, Fannie Mae’s CEO.

The company said it holds $4.3 trillion in assets and either owns or guarantees 25% of total single-family mortgages and 20% of multi-family mortgages in the U.S.

Palantir’s co-founder and CEO, Alex Karp, said this partnership will take on attempts to “defraud our mortgage system and exploit hardworking Americans.”

This also comes at a time when President Donald Trump has announced his intention to take Fannie Mae and Freddie Mac public.

"I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President,” he said in a post on his social media platform, Truth Social, on Tuesday.

Palantir’s stock has surged over 65% year-to-date and 493% over the past 12 months.

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