May 28, 2018

Fannie REO Specialist Faces Kickback Allegations

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Fannie REO Specialist Faces Kickback Allegations

A former Fannie Mae sales associate faces charges for allegedly providing listings from Fannie’s REO inventory to a real estate broker in exchange for kickbacks. 

In Armando Granillo’s job as a former REO specialist for Fannie Mae, he would review applications submitted by real estate brokers who wanted to list properties that had been foreclosed on by Fannie Mae. 

But a Tucson-based real estate broker contacted federal agents, alleging that Granillo had told the broker that he’d supply listings in exchange for paying him a percentage of the commissions — about 20 percent — on what was earned in selling the Fannie Mae properties. 

The broker alerted federal law enforcement officials. Granillo allegedly told the broker, in a recorded conversation by investigators, that kickbacks are a “natural part of the business.”

Granillo was arrested March 5 and faces three counts of wire fraud. He could face up to 20 years in federal prison for each count of wire fraud.

Source: “Fannie Mae REO Specialist Allegedly Asked for Kickbacks,” Inman News (March 27, 2013)