Firm adds independent directors and risk officer to restore lender confidence
Meridian Capital Group is once again eligible to broker loans backed by Fannie Mae, after the mortgage financing giant lifted a previous restriction on the firm.
The move allows lenders to resume requesting quotes for Meridian-brokered transactions effective immediately.
“Meridian has made investments in people, processes, and technology to implement a risk management and internal control environment that is best-in-class among commercial mortgage brokerages,” said Meridian CEO Brian Brooks. “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.”
The reinstatement by Fannie Mae comes just months after Freddie Mac lifted its ban on Meridian in January, following a period of heightened regulatory scrutiny. Both government-sponsored enterprises had paused transactions with the brokerage amid allegations of fraud.
In August of last year, Fannie Mae and Freddie Mac introduced stricter requirements for commercial and multifamily lending, aiming to reduce fraud and improve oversight. Among those requirements was the mandate for lenders to independently verify borrower financial information, particularly for apartment buildings and other multifamily properties.
Read more: Fannie Mae, Freddie Mac to tighten requirements on commercial lenders
Meridian, which had been under scrutiny following fraud allegations, has spent the past year reinforcing its internal governance. The firm recently appointed two new independent board members: Andrew Bon Salle, formerly Fannie Mae’s executive vice president and head of single-family business and the former chairman of HomePoint; and Pat Jackson, CEO and chief investment officer at Sabal Investment Holdings.
In addition, Meridian named Melissa Martinez as its first chief risk officer. Martinez previously served in the same capacity at CoreLogic and OneWest Bank.
“Risk management is an enabler for our clients,” Martinez said in a press release. “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.”
The firm has also redesigned its underwriting and review procedures. A new pre-screening process now applies to all brokered transactions, evaluating compliance and risk based on loan size. A management credit approval committee was created to oversee large loans and all agency transactions prior to funding.
Additionally, a quarterly loan review process will monitor transactions after closing, with any issues triggering corrective actions that could range from retraining to suspension or termination.
Founded in 1991, Meridian Capital Group is headquartered in New York City, with offices in New Jersey, Maryland, Illinois, Ohio, Florida, and California. The firm is a leading advisor in commercial real estate finance, investment sales, and retail leasing. Its platform supports transactions across property types, including office, retail, multifamily, hotel, mixed-use, industrial, healthcare, and senior housing.
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