Arbor Realty – Persona Non Grata

Author: Viceroy Research Published on: June 6, 2024 Published in: Arbor Realty Trust (NYSE:ABR)

June 6, 2024 – Viceroy’s unanswered inquiries to Arbor and the sell-side about its commercial ties to BBG & Meridian have been answered thanks to vetted whistleblowers and confirmed by multiple industry sources.

Viceroy understands from whistleblowers that Freddie Mac’s restricted vendor status on appraiser BBG, especially in relation to managing director Jon DiPietra, also relates to many loans originated/underwritten by Arbor.

Our sources similarly confirm that Fannie Mae is running a parallel investigation into BBG-appraised loans, also implicating DiPietra, substantially all of which were originated and/or underwritten by Arbor.

Viceroy similarly understands that Arbor is similarly implicated in Meridian’s Freddie Mac ban, wherein it was the underwriter for Meridian originated loans. Arbor’s CEO Ivan Kaufman refused to comment on Arbor’s exposure to Meridian despite explicit questions from analysts and investors. We understand that combined value of Arbor’s loans potentially subject to Fannie Mae repurchase demands, make-whole payments, or other loss-sharing agreements is ~$1.5b.

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