Freddie Mac Pauses Valuations From Appraiser BBG
By Mark Hallum May 24, 2024 12:37 pm
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Freddie Mac (FMCC) is putting Dallas-based BBG‘s valuation arm on ice.
The government-sponsored enterprise (GSE) put BBG “under review” and paused accepting valuations and appraisals from the firm as it looks into the work of Jon DiPietra, managing director of BBG’s New York office, The Promote reported. DiPietra has been added to Freddie Mac’s “restricted vendor.”
It’s unclear what led to the decision by Freddie Mac, but the GSE continues to transact with other business lines within BBG, sources said.
BBG and Freddie Mac did not respond to requests for comment, and DiPietra could not be reached for comment.
DiPietra has organized financing for major New York City properties such as 7 World Trade Center, 650 Fifth Avenue and Hallett’s Point, according to the company’s website.
Freddie Mac has been cracking down on brokers recently after a more expansive investigation into Meridian Capital Group‘s dealmaking practices. In November 2023, all dealmaking by Meridian was halted over questionable loan information in originations tied to a broker at the firm.
In 2022, Meridian was known for signing the most Freddie Mac and Fannie Mae (FNMA) originations through lenders for the seventh year running. But the investigation could result in buybacks if it was proven that Freddie Mac loans originated beneath the government-sponsored entity’s underwriting standards, Commercial Observer reported at the time.
The inquiry led to a shakeup at Meridian, where CEO and co-founder Ralph Herzka was replaced by Brian Brooks in April as the investigation continued, according to Bisnow.
Not only that, but Fannie Mae, Freddie Mac and the U.S. Department of Justice have been cracking down on broker fraud across the country after buying back loans in which loopholes were exploited to the maximum benefit of the broker at the expense of taxpayers, The Real Deal reported.
And Freddie Mac has tightened its underwriting requirements and ensured all loan documentation gets delivered directly from borrowers to Freddie Mac lenders, without passing through a broker or correspondent in between, as CO previously reported.
Updated: This story has been updated to clarify more details of the review.
Mark Hallum can be reached at mhallum@commercialobserver.com.
