Berkadia Moving Away From Outside Brokers

Berkadia is further moving away from using outside brokers on its loans, according to sources familiar with the matter.

The firm’s lending arm has shifted to dealing directly with borrowers instead of using intermediaries, according to the sources. 

The move comes after Freddie Mac changed its underwriting policies and is seeking to clamp down on fraud in the industry.  

The company said in a statement it will still use “reputable brokers” for loans on a “case-by-case basis when it’s in the best interest of their clients.”

“Berkadia has always prioritized direct business with our clients and customers rather than operating through third party brokers,” said Berkadia’s spokesperson.

The shift is notable given the company’s scale of operations. 

Last year, Berkadia ranked as the largest lender of Fannie Mae, Freddie Mac and HUD loans in the U.S. Berkadia’s loan volume totaled $11.89 billion with its Freddie Mac loans totaling $6.59 billion. 

Berkadia’s move is happening amid a widening investigation by Fannie Mae, Freddie Mac, and Federal Housing and Finance Agency Office of Inspector General to weed out mortgage fraud. 

Freddie Mac has recently made a few changes to underwriting policies. The agency now requires property owners to send loan documents directly to lenders instead of going through brokers. Freddie Mac also increased know-your-customer requirements for first time borrowers.

Read more

Freddie Mac Places Appraiser BBG Under Review

Freddie Mac places appraiser BBG under review

Meridian Lays Off New Jersey Brokers

Meridian makes cuts to New Jersey office 

Meridian Capital under investigation by Freddie Mac

Notably, Freddie and Fannie have essentially blacklisted commercial mortgage brokerage Meridian Capital Group from new deals, while the agencies examine allegations that a few of its brokers inflated financials to obtain larger loans than they otherwise would have.

In response, Meridian has appointed Brian Brooks, a former Acting Comptroller of the Currency, as its CEO. The firm has also hired a chief risk officer. 

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

    Input this code: captcha