Q: Does Freddie Mac require employees of each approved Seller/Servicer to complete annual fraud training?
A: Yes. Chapter 3201.1 of Freddie Mac's Single Family Seller/Servicer Guide (the "Guide") addresses Fraud Prevention and Detection. It indicates, in relevant part, that Sellers/Servicers must train employees, and certain non-employees, who are in a position to notice and report fraud or suspected fraud at least annually to ensure that these employees are aware of emerging fraud scenarios. Such individuals must be trained in all applicable areas of the Seller's/Servicer's mortgage business with regard to:
(1) Common and emerging fraud schemes; and
(2) Red flags that may signal fraud and the need for further review.
Non-employees who may require fraud prevention and detection training include, but are not necessarily limited to, contract underwriters and processors, contract quality control firms, borrower outreach companies, loss mitigation providers and collection companies.
Trainings may be conducted by the Seller/Servicer or by a qualified third party. Alternatively, the Guide permits Sellers/Servicers to meet the training requirements by obtaining annual written verifications from the individuals requiring training. Verifications must confirm that training has been received from a third party and meets the requirements of the Guide.