Mortgage Security Threats Surge
Cybersecurity breaches across the mortgage industry reached a record high in 2023. Several large companies fell victim to attacks within months of each other last Fall. The results effected borrowers and servicers alike: sensitive data was at risk of disclosure, systems needed to be suspended, and timely reporting of loan portfolios was disrupted.
Freddie Mac Issues Statement
Recent events have spurred renewed discussion around the importance of security and business continuity. Freddie Mac, in fact, has gotten in front of the situation in one of their latest bulletins. They call on servicers to implement tighter security measures to avoid further incidents in 2024.
The investor reminds servicers that they are required to report any security breach within 48 hours and must oblige with any inquiries from Freddie Mac. They state that they will be reviewing their own security systems and protocols as well. The bulletin concludes with a stern warning about the seriousness of the matter, quoting from its servicing handbook that servicers must comply with any “instruction, request or requirement issued by Freddie Mac.”
Starting the Conversation
Whether other agencies will make similar statements is still to be seen. Doubtlessly, though, many mortgage servicers will be reviewing their business continuity plans and taking the necessary steps to protect their assets and avoid potential conflict.
DLS has helped begin the discussion and stress the importance of cybersecurity within the mortgage industry. Our very own Donna Schmidt has spoken about the topic and has been featured in several articles, such as at Mortgage Orb with Michael Bates, National Mortgage Professional with Christine Stuart, and over at Inside Mortgage Finance with Brandon Ivey.
