A commercial mortgage broker put on Fannie Mae's suspended list says the move "was made in error" and put the onus on the other company involved.
Fannie Mae recently suspended Eastern Union and Sevenstone Capital, for now temporarily barring them from doing business with the government-sponsored enterprise. The news was previously reported in The Real Deal.
Sevenstone Capital, headquartered in Lakewood, New Jersey, was founded by some of Eastern Union's former employees.
"Fannie Mae's action relates to activities of former Eastern Union brokers who have not worked for the company in more than four years," a statement from Eastern Union said. "As soon as Eastern Union learned of possible, questionable conduct, we took immediate, appropriate action to address it."
The company is currently in discussions with Fannie Mae to have the move reversed and expects a resolution shortly.
Still, the suspension is having minimal impact on Eastern Union's operations, as commercial real estate market dynamics have driven 95% of its business to non-Fannie Mae lenders, the statement said.
"If we conclude that a client's best option is a Fannie Mae loan, we will refer them to a trusted broker outside of our firm or provide guidance to meet their needs.
"Eastern Union remains committed to delivering exceptional service, upholding its excellent reputation, and supporting clients in achieving their commercial real estate financing goals," the company continued.
In 2020,
National Mortgage News reached out to Fannie Mae and Sevenstone Capital, headquartered in Lakewood, New Jersey, for comment but had not received a response by press time.
In 2023, the Federal Housing Finance Agency, Fannie Mae and Freddie Mac's regulator,
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