Freddie Mac maintains an exclusionary list of all real estate professionals that are excluded from participating in loans and financing directly or indirectly through Freddie Mac. If you are on the list you can work anywhere you want but neither you or the firm you work for may process loans that go to Freddie Mac. Many banks will not finance with a person placed on the list. Selling through Freddie Mac is a privilege and not a right.
A real estate professional can be placed on the List after receiving notice of a prohibited transactions such a fraud or misrepresentation. Getting off the List requires a lot of effort. Keeping a person or company off the List also requires significant effort.
Mahdavi Bacon Halfhill & Young has experienced attorneys who can assist you from being placed on the List and removing someone from the List. Here is an outline of what has to be done.
- Demonstrate that you have changed, even if you did not do anything wrong; this means working with a professional to investigate what occurred and showing how you learned from whatever role you played in the alleged fraud.
2. Outline your education and any courses you have taken in real estate and ethics.
3. Show your commitment to the profession and any contributions to charities or the community.
4. Obtain personal and professional reference letters highlighting your character.
5. Provide a sworn personal affidavit, outlining necessary facts to demonstrate your willingness to provide statements under oath. The most important ingredient is to be forthright with the marshalling of the facts and evidence.
6. Provide a resume.
7. Provide your own FICO score to demonstrate your financial responsibility.
Removing your name from the list is hard but possible. Mahdavi Bacon Halfhill & Young is located close to the Freddie Mac headquarters and can provide knowledgeable assistance in removing and keeping off real estate professionals from the “Exclusionary List.”