Alex Karp, CEO of Palantir Technologies, will speak at the Digital X event held in Cologne, Germany on September 7th, 2021.
Andrea Lentz | Getty Images
Semi-Government Finance Company Fanny May On Wednesday, the company announced its partnership with defense technology players. Palantir To detect mortgage fraud, we will deepen our ties with the federal government and the company, which was a major winner in the Second Trump administration.
Fannie May CEO Priscilla Almodovar said at a press conference Wednesday that the company is “more aggressively identifying fraud,” with the help of Palantiers, starting with a multi-family housing business. Early tests showed that Palantir’s technology, including elements of artificial intelligence, could identify fraud in seconds that took human investigators two months to find it, she said.
Palantir’s shares have risen by more than 140% since winning the election of President Donald Trump in November. Technology stocks play a role in helping modernize the US military and cut costs for governments, and appear to suit the administration’s priorities. CEO Alex Carp said Wednesday that mortgage fraud detection could be done in a way that “protects underlying data and protects the privacy of those who submit forms.”
Palantir’s stock has dramatically surpassed the broader stock market since the November election.
With Fanny May Freddie Mac It is a government-sponsored company that has been under the federal housing finance sanctuary since 2008. The official names of the two companies are the Federal Mortgage Association and the Federal Mortgage Corporation, respectively.
FHFA director William Plute said on Wednesday that the Palantier program could be extended to Freddie Mac in the future, and the agency also said it was talking to Elon Musk’s Zai company about potential partnerships.
“The sky is at its limit. We’re not just limited to scams. If there’s a way to pull costs out of the system, we want to do it,” Pulte said.
The press release did not include the amount of dollars Fannie May would pay Palantir for the service.
The announcement is being pushed because it could take Fannie and Freddie from their parents and reestablish them as close to independent businesses.
“Our great mortgage institutions, Fannie Mae and Freddie Mac, provide important services to our country by helping hardworking Americans reach their American dreams. “I’m working to make these amazing companies public, but I want to be clear. The US government continues to be strong in my position to maintain tacit guarantees and oversee them as president. These institutions are now doing very well.
The “implicit guarantee” mentioned by Trump refers to the idea among investors that the government will not let Fannie and Freddie default on mortgage-backed securities. The concept is legally unbinding, but it serves its massive market functioning, and in theory it leads to a lower mortgage rate by reducing perceived risks to housing market investors.
Pulte, the grandson of the founder of home building company Pultegroup, said on CNBC’s “Money Movers” that the exact plan to bring Fanny and Freddie public is still undecided and could even involve businesses that remain parents.
“The president has decided to sell a small piece or you are there, it’s entirely up to the president,” he said.
There are two companies trading at the counter, and it is thought that their shareholders will be able to see the big profits if Fannie and Freddie are made public. One such shareholder is Bill Ackman’s Pershing Square, with the hedge fund manager publicly calling for IPOs for the two companies.
