Meridian Capital Group, one of the country’s largest commercial brokers, says it is off a blacklist and back on the inside with Fannie Mae.
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Government-sponsored mortgage lender Fannie Mae has reinstated Meridian Capital as an approved broker, allowing the New York-based firm to resume quoting loans.
The move comes after a year of improving its governance and risk management oversights, according to a release.
“We appreciate Fannie Mae’s recognition of our commitment to continuous improvement in these areas and look forward to offering our clients a full suite of financing options, including agency execution,” Meridian Chairman and CEO Brian Brooks said in a statement.
The move comes on the heels of Freddie Mac’s decision to reinstate Meridian-brokered loans this past October. The agency blacklisted the firm in 2023 amid allegations that brokers fabricated numbers to help get clients bigger loans.
In its release, Meridian highlighted changes in “people, processes, and technology” over the past year. The company also tapped Brooks as CEO in March 2024.
Fannie Mae didn't respond to Bisnow’s request for comment Monday.
Under Freddie’s watch, Meridian-brokered loans are facing extra scrutiny on top of the agency’s typical requirements. Any lenders would have to repurchase Meridian-brokered loans within a year of origination if a borrower defaults on the loan or if fraud is uncovered at any time, The Real Deal reported, citing The Promote. Lenders must also vouch that Meridian deals contain no fraud.
Meridian has since rolled out an overhaul that includes a new governance framework, according to the release. The new framework includes a quarterly loan review process that can trigger corrective action such as retraining, suspension or termination if violations are found.
The company also developed a new underwriting process that requires the company’s brokered deals to undergo prescreening to ensure compliance and approval based on the size of the loan and risks.
Chief Risk Officer Melissa Martinez, who previously held the same role at CoreLogic and OneWest Bank, joined the Meridian team alongside two new independent board members: Andrew Bon Salle, former executive vice president at Fannie Mae, and Pat Jackson, CEO and chief investment officer of Sabal Investment Holdings.
“Risk management is an enabler for our clients,” Martinez said in a statement. “The process oversight we have put in place will give lenders confidence that Meridian transactions have been carefully reviewed in a process that is as robust as you would expect from a bank.”
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