HomeSteps.com

Fraud Education Center

file drawer with folders for fraud and investigations

HomeSteps maintains a zero-tolerance policy regarding fraudulent, dishonest and/or illegal acts performed, facilitated or known by any suppliers selling or servicing Freddie Mac/HomeSteps homes and by potential purchasers. You play an important role in helping us manage this policy and it is essential that you maintain the highest ethical standards.

Here is what you need to know about HomeSteps’ fraud policy and ways to identify common fraud schemes.

HomeSteps Fraud Policy

All suppliers selling or servicing Freddie Mac/HomeSteps homes are required to follow these guidelines:

  • Be fair and honest in all dealings.
  • Comply with all federal and state laws and regulations regarding the sale, management and maintenance of our residential real estate.
  • Do not give or take bribes/kickbacks. The giving or receiving of a bribe or kickback is illegal. Suppliers involved in the giving or receiving of a bribe, kickback, padding and/or otherwise falsifying invoices are subject to immediate termination from the supplier network as well as prosecution.

Additional expectations may be found in the Code of Conduct. As a reminder, all suppliers selling and servicing HomeSteps homes must adhere to the Code of Conduct.

It is important to note that Freddie Mac employees are held to the same high ethical standards and are required to adhere to a Code of Conduct, which prohibits employees from engaging in any fraudulent, dishonest and/or illegal acts.

To report any known or suspected fraudulent, dishonest or illegal acts conducted by a network supplier, non-network supplier and/or Freddie Mac/HomeSteps employee, contact one of the following:

  • Freddie Mac Fraud Hotline – 1.800.4.FRAUD.8
  • Freddie Mac Compliance Hotline – 1.877.301.CODE (2633)
  • HomeSteps Customer Service – 1.800.972.7555
  • Freddie Mac Customer Service – 1.800.FREDDIE (373-3343)
  • Freddie Mac Mortgage Fraud Reporting – Tip Referral Tool (TRT)SM

You may choose to contact us with your information, or you may do so anonymously. Freddie Mac will assess each case individually.

Freddie Mac does not tolerate any retaliation against an individual or vendor who, based on their reasonable good faith belief, reports a concern about potential illegal or unethical conduct. Once the complaint is investigated, the findings will not be disclosed to outside parties. Each complaint is investigated to determine if the party is subject to criminal and/or civil penalties.

It is the intent of Freddie Mac to promote ethical and professional behavior among its employees and suppliers servicing our homes. Thank you for your commitment in helping us to maintain these high standards.

Identifying Common Fraud Schemes

The following are some common fraud schemes, along with red flags that can help you identify them.

First Look Violations: Fraud occurs when an ineligible buyer misrepresents the intended home use as being owner-occupied. Red flags include:

  • The home is listed for rent/for sale immediately or soon after closing.
  • The home appears to be vacant for more than 60 days following closing.
  • The buyer is known to currently own and reside in another property or in another area.
  • The buyer owns multiple investment properties in the same area as the subject home.

Billing Schemes: Fraud occurs when Freddie Mac is billed for services not rendered or to companies that do not exist. Red flags include:

  • Repairs or services that do not make sense for the property, area or season.
  • Visual inspection does not support the invoiced repair(s).
  • Invoice amount is excessive for the work.

Bid Rigging: Fraud occurs when prospective bids are tendered in a way to ensure that the winning bid is artificially high. Red flags include:

  • Common format to the bids.
  • Common identifiers on the bids (e.g., addresses, contact information).
  • Name similarities between competing bidders.

Rental Schemes: Fraud occurs when a property is advertised as available for rent when it is actually listed for sale. Red flags include:

  • A For Sale or For Rent sign that is not the listing agent’s sign.
  • Someone living in a previously vacant home claiming the right to occupy the home.
  • The deed has been conveyed out of Freddie Mac’s name post-foreclosure.

Learn more about preventing fraud by visiting My Home by Freddie Mac®.