Freddie Mac, a key player in the multifamily mortgage industry, is currently investigating a deal brokered by New York-based commercial mortgage broker, Meridian Capital Group. The probe has led to a temporary halt in their business relations, impacting Meridian's portfolio significantly. The company, under the leadership of Ralph Herzka, has responded by suspending an unidentified broker and has pledged its cooperation with Freddie Mac's inquiry.
The investigation has substantially affected Herzka's business due to Freddie Mac's crucial role in the multifamily industry. In fact, Freddie Mac has recently financed a significant number of rental units. This pause on Meridian's activities related to brokering deals for Freddie Mac lenders denotes the intensification of Freddie Mac's fight against mortgage fraud.
Meridian Capital Group is renowned for its core business in mortgage brokerage. Beyond this, it also engages in investment sales and retail leasing, while facilitating senior housing and healthcare deals. It provides specialized loan services to small-building owners.
Meridian once held a stake in Beech Street Capital but lost it when Capital One acquired Beech Street in 2013, leading to a hiatus in Herzka’s lending business investments. However, in 2021, Meridian teamed up with investment manager Barings to launch NewPoint Real Estate Capital, an originator led by David Brickman, Freddie Mac's former CEO. Notably, Meridian is an investor in a lending platform run by Brickman.
As part of the ongoing investigation, neither party has offered any comment. However, Meridian reiterated its commitment to industry standards and best practices and underscored its trusted relationships with stakeholders. The company could be removed from the blacklist if it is cleared of any allegations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.