On January 29, Fannie Mae issued a new fraud alert to mortgage lenders warning them of 15 new potentially fictitious employers that have recently been appearing on mortgage applications. As previously covered in InfoBytes, Fannie Mae’s mortgage fraud program has issued several prior alert bulletins to the mortgage industry regarding active and potentially fraudulent schemes, all of which have identified fake employers in California. This new alert adds 15 additional California companies to that list, which now includes 65 potentially fake companies. The GSE alert offers “red flags” for lenders to be aware of when processing loan applications, including high starting salaries and paystubs that lack common withholdings for such things as health insurance and 401(k). Additionally, the alert bulletin suggests that lenders verify the existence of employers listed on borrower applications, and practice careful due diligence in the entire application process.