(Reuters) – Mortgage finance companies Fannie Mae and Freddie Mac plan to impose tougher rules on lenders and commercial real estate brokers in the wake of an emerging regulatory crackdown on fraud in the multitrillion-dollar market, the Wall Street Journal reported on Monday.
Lenders will have to independently verify financial information about borrowers for apartment complexes and other multifamily properties, the report said, citing people familiar with the initial plans.
In addition, lenders may face stricter requirements to confirm whether a mortgage borrower has enough cash and verify the source of their funds, according to the report.
The Federal Housing Finance Agency, which serves as the primary regulator for Fannie Mae and Freddie Mac, declined to comment.