Meridian Capital Group Gains Approval to Re-enter Fannie Mae Loan Market

Meridian Capital Group has received approval to re-engage with the Fannie Mae (FNMA) loan market following a year-long suspension. The brokerage firm announced that effective immediately, lenders affiliated with Fannie Mae are permitted to resume negotiations for loans brokered by Meridian.

Background on Suspension

This development marks a significant turnaround for Meridian, which last year faced restrictions imposed by Fannie Mae due to concerns regarding a particular loan negotiated by the firm. This recent green light reflects a renewed confidence in Meridian’s processes.

In November 2023, Freddie Mac (FMCC) had similarly imposed limitations on Meridian’s participation in its network. However, these restrictions were lifted by the end of that year.

Commitment to Enhanced Compliance

Brian Brooks, the chairman and CEO of Meridian, expressed gratitude for Fannie Mae’s recognition of the firm’s enhanced risk management efforts, stating, “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.” He indicated that the firm looks forward to offering a comprehensive range of financing options as it re-establishes its presence in the market.

Leadership and Structural Changes

Since March 2024, Brooks has steered Meridian after taking over from founding CEO Ralph Herzka. Under his leadership, Meridian appointed Melissa Martinez from CoreLogic as the firm’s first chief risk officer in June 2024. This strategic move aims to bolster compliance and risk control in commercial real estate finance and investment sales.

Additionally, Meridian has expanded its board with the addition of two independent members, Andrew Bon Salle, a former executive vice president at Fannie Mae, and Pat Jackson, CEO and chief investment officer at Sabal Investment Holdings.

New Risk Management Measures

In response to the previous restrictions, Meridian has implemented new underwriting procedures, which now include a thorough screening process for all transactions handled by the brokerage. A management credit approval committee has also been established to assess larger loans and all brokered deals with Freddie Mac and Fannie Mae before reaching financing stages. Moreover, a quarterly loan review process is now in place to ensure compliance and address any detected errors or violations through necessary actions.

Martinez emphasized the importance of these new oversight processes, saying, “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.”

Industry Context

This move by Meridian occurs during a transitional period for Fannie Mae and Freddie Mac, especially following President Donald Trump’s appointment of Bill Pulte, a figure from the private equity space, as chair of the Federal Housing Finance Agency. The agency is currently exploring potential privatization of these government-sponsored enterprises (GSEs).

Fannie Mae officials did not respond immediately to inquiries for further comment regarding Meridian’s re-entry into the loan market.

For further inquiries, Andrew Coen can be reached at ac***@****************er.com.