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Meridian Capital Group is undergoing significant changes due to a serious Freddie Mac investigation. The trouble began last fall with allegations of falsified loan information, leading to a temporary blacklisting by Freddie Mac and Fannie Mae. Since then, Meridian has replaced key leaders and tightened protocols to ensure financial accuracy. Despite remaining on the blacklist, the firm continues to close substantial deals and maintain its market presence with new leadership focused on compliance and risk management. We examine Meridian’s strategy amid the ongoing investigation in a new article.

As the real estate world eagerly awaits a drop in interest rates, every word from Fed Chair Jerome Powell is scrutinized for clues about the timing of the first rate cut. At a recent conference in Europe, Powell effectively dispelled any suspicion that a rate cut would come at the next meeting at the end of the month, saying, “We just want to understand that the levels that we’re seeing are a true reading of underlying inflation.” The hope is that evidence of inflation settling around their two percent target will emerge before the next meeting in September.

High rates are worrying many when it comes to the health of smaller, regional banks with a lot of commercial real estate debt on their books. But some investors don’t seem to be as concerned. The Texas bank First Foundation has raised $225 million from investors including “alternative” investment firm Fortress despite their large commercial real estate exposure. If other investors see opportunity rather than threat when it come to commercial real estate debt might now it would give banks a lot more options to avoid default and would ease worries that it losses to tip the banking system into crisis.

The push to build more housing seems to finally be affecting the multifamily market. A new report is showing that newly built apartment buildings are filling up at the slowest pace since 2020, largely due to the surging supply of new units on the market. If new buildings continue to struggle we might see developers start to build smaller, more affordable units as a way to appeal to the increasingly price-sensitive renter.

Unlock multifamily market insights on July 9th

Curious about what to expect in the softening multifamily market in the second half of 2024? Sign up for our next Propmodo Live webinar on July 9th, where we will talk to experts from JLL, Defigo, and Veritas about how they plan to attract and retain residents in the changing multifamily landscape. We will explore how owners and managers can improve operational efficiencies while navigating a landscape of compliance hurdles and evolving technology.

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Meridian Capital Shifts Focus Amid Ongoing Investigation

Meridian Capital Group, a prominent player in commercial real estate finance, is undergoing significant changes in response to a serious investigation by Freddie Mac. The trouble began last fall when Freddie Mac started investigating Meridian over allegations of falsified loan information, leading to a temporary blacklisting from both Freddie Mac and Fannie Mae. Since then, the firm has replaced key leadership positions and implemented stricter protocols to ensure the accuracy of clients' financials. Meridian continues to close substantial deals and maintain its market presence with new leadership and a focus on compliance and risk management. But, will these efforts be enough to secure the company's future stability?

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