You've found yourself on the Federal Home Loan Mortgage Corporation ("Freddie Mac") Exclusionary List (the "List"), and now Freddie Mac, Fannie Mae (Federal National Mortgage Association), and most other lenders won't allow you to participate in loans where either party has a Freddie Mac or Fannie Mae program loan. How did you get on the List, and how do you get off the List?
This post includes my experience working with real estate professionals who have found themselves on the List. By no means do we have the "magic formula" for taking people off the List. In fact, in situations when we have successfully helped people off the List, and in situations where we have been unsuccessful, we cannot tell you why.
As I understand the process: when Freddie Mac determines that you have done something to merit inclusion on the Exclusionary List, they first send you a letter giving you a certain period of time to explain why you should not be on the List. If you do not respond, you're on the List. If you do respond, you get a letter saying that you will not or you will go on the List - no explanation one way or the other. Thereafter, you can request to come off the List two years after your inclusion and, if that is denied you can request annually to come off the List. Again, any request to come off the List is responded to simply with a letter that you are not coming off the List or you are coming off the List effective some date certain - no explanation as to why.
In my experience, the letter requesting removal from the list should spend very little time explaining why you should not have been on the List in the first place. You're on the List for a reason, and arguing why you should have never been on the List seems to be a waste of time and resources. Instead, we focus a majority of the letter on why you should come off the List. In other words, what have you done to show Freddie Mac that you "are no longer a threat" to the loan origination process. We include items such as:
- Policy Manual
- Job Description
- Letters of Recommendation from superiors or clients
- Certificates from continuing education received or taught
- Public Record documents
- Any other relevant documents.
In short, the more evidence we can provide, the better we believe your chances are to come off the List.
I spoke to this topic years ago and you can find the YouTube video here. We have helped many real estate professionals, including realtors, mortgage originators, appraisers, attorneys, notaries and surveyors.
For more information on the Freddie Mac Exclusionary List, please subscribe to the Yesner Law Podcast, on iTunes and Stitcher. Or, please contact us to schedule a free initial consultation to discuss your options at 813-774-5737 or email me directly at email@example.com.
Shawn M. Yesner, Esq., is the founder of Yesner Law, P.L., a Tampa-based boutique real estate and consumer law firm that helps clients eliminate debt by providing options, so they can live the lifestyle of their dreams. We assist clients with general real estate law, asset protection, the sale and purchase of real property, Chapter 7 liquidation, Chapter 13 reorganization, bankruptcy, foreclosure defense, debt settlement, landlord/tenant issues, short sales, and loan modifications in Tampa, Westchase, Odessa, Oldsmar, Palm Harbor, Clearwater, Pinellas Park, Largo, St. Petersburg, and throughout the greater Tampa Bay area.