WASHINGTON, D.C. AND MCLEAN, VA. — Mortgage financing firms Fannie Mae and Freddie Mac plan to impose stricter rules for commercial property lenders and brokers, according to a report from the Wall Street Journal. The new guidelines are part of an emerging regulatory crackdown on fraud. Federal prosecutors and investigators have been increasingly pursuing fraudulent mortgage schemes since 2022. The rules may come into effect later this summer.
Under the new rules, lenders would have to “independently verify” the financial information of potential borrowers and verify their source of funds for multifamily properties, according to the Wall Street Journal. Additionally, lenders may be required to conduct due diligence on the appraised value of a property by evaluating the asset’s financial performance.