Mortgage financing firms Fannie Mae and Freddie Mac are set to impose stricter rules for commercial property lenders and brokers, following a budding regulatory crackdown on fraud in the multi-trillion dollar market, The Wall Street Journal reported Monday.
Lenders would have to independently verify financial information related to borrowers for apartment complexes and other multifamily properties, the report said, citing people familiar with the preliminary plans.
Additionally, lenders could face tougher requirements for confirming whether a property borrower has adequate cash and verifying their source of funds, according to the report.
The Federal Housing Finance Agency, which serves as the primary regulator for Fannie Mae and Freddie Mac, declined to comment.
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