C
hris Roach, CEO of appraisal firm BBG, is stepping down and will be replaced by CFO Bill Britain. This change comes as the company faces challenges after Freddie Mac put it "under review" and stopped accepting loans using valuations or appraisals from BBG. Roach will continue to work at BBG as a senior advisor.

    The move follows a series of leadership changes, including Jon DiPietra being placed on Freddie Mac's "restricted vendor list," essentially a blacklist. It is unclear why Freddie Mac took this action. Roach cited the expectation of significant market activity in the fourth quarter and into 2025 as a reason for his decision to change roles.

    BBG has acknowledged being challenged due to Freddie Mac's review, but says it is implementing initiatives to elevate its compliance standards and practices. The company can still provide environmental and engineering assessment services to Freddie Mac. BBG recently hired a new chief compliance officer and Marty Skolnik, former chief appraiser at Freddie Mac, to oversee government-sponsored enterprises compliance.

    Roach has led BBG's growth in the western region and was named president in 2015 before becoming CEO in 2016. He started with a predecessor of BBG in 2002. The company is one of the Big Five national commercial real estate services firms, serving 4,500 active clients.

    Freddie Mac and Fannie Mae have been cracking down on brokers, title insurers, and investors over inflated financials, discovering fraudulent loans from private lenders. Investigations led to guilty pleas from investors and charges against a title insurance firm owner for his alleged role in a multi-million dollar mortgage fraud scheme.