Cyber attack creates mortgage meltdown, freezes VA mortgages
RICHMOND, VA (WWBT) - A malicious cyber attack froze mortgages and put home ownership in jeopardy for thousands this week, leaving moving trucks and future plans in Virginia on standby.
The attack hit Elli Mae Inc., a software company that links key players within the mortgage system. The private firm has no affiliation with Fannie Mae, and handles close to one in five U.S. mortgages.
The incident prevented new mortgages from being approved, and put new homeowners in danger of missing critical closing deadlines.
"This is my future, this is the home I'm about to move into," said Hopewell resident Haley Naulty, referring to her first home she hopes to buy. "This is so sudden… what am I supposed to do?"
The attack hit April 1, and prevented lenders, insurers and brokers from communicating or accessing client information. Ellie Mae released a statement saying that no consumer personal information had been compromised, and forensic teams are investigating the source of the attack.
By midday Wednesday, Ellie reported the issue had been resolved, but a mortgage backlog remains.
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