Freddie Mac Exclusionary List
Transcript for Video:
Freddie Mac has what is called an exclusionary list. How many people knew this existed? Freddie Mac has a blacklist. Freddie Mac has what they call an exclusionary list. The interesting thing about the exclusionary list is even though it says in there, it’s confidential, and it’s strictly maintained by Freddie Mac, they share it with Fannie May, with FHA, with all these other organizations.
The people that go on this list, are people that Freddie Mac finds, or Fannie May finds, or FHA finds who do these types of short sale filps without disclosure. The reason I found out about it is I had a client, a broker come to me, who’s been on the exclusionary list now for three years. She did a short sale, she did a short sale flip, she didn’t understand what she was doing, she was doing somebody’s, some guru’s program and didn’t quite understand what she was doing, both her and the title company ended up on the exclusionary list. For three years, she could do nothing but cash deals because if she ever came across a situation where Freddie Mac, Fannie May, FHA, VA were the short sale lender, or the lender that was providing financing to the buyer, either one, she was flagged on the exclusionary list she was left off and she could not do the transaction, she could not be paid a commission for that transaction. Freddie Mac, Fannie May, the rest, refused to close the deal. Regardless of which side they were on. So, a lot of times what attorneys will tell you, I know I’ve said it to clients before myself is that: it’s wrong, you should not be doing this. But let’s say that you have a buyer that says: Well I don’t care that I signed this affidavidt that says I can’t resell it within 30 days, how’s the bank ever going to find out? In this lady’s particular case they did, and they put her on the list. The way we got her off, was sort of a maya culpa to Freddie Mac, we’re sorry we did this, here’s why we did this, here’s what we’ve learned, here’s the systems we’ve implemented so we don’t do it again But it cost this realtor how many thousands and thousands of dollars in commissions, plus she had to pay me to help get her off the list. Because she did a lie by omission basically, in a Fannie May short sale closing.