Fannie Mae Employee Behind Bars: Justice is Served for the RE Community

After a quick two day trial earlier this month, a jury in Santa Ana found Armando Granillo, a former Fannie Mae employee, guilty on three counts of defrauding the company he worked for. Granillo, who had worked at the company’s Irvine office, was a foreclosure specialist at the mortgage giant before he was arrested for soliciting illegal kickbacks.
As previously mentioned in our articles “Did Your Pocket Get Picked by a Fannie Mae Employee?” and “Scandal at Fannie Mae: The Investigation Continues”, the investigation began back in March of 2013 when government officials recorded a series of conversations between Granillo and Arizona broker Gus Maughan, in which the two discuss a 20% return on the resulting sales commissions.

In court, jurors watched footage of Granillo as he promised to help Maughan close sales and “put other realtors in Tucson out of business” in exchange for the $11,200 kickback.

This shady practice may be prevalent among the foreclosure specialists in Irvine. During his testimony Granillo admitted that he knew he could be fired for the kickbacks, but suggested that kickbacks were common at Fannie Mae. He went as far as to call his associates, “a bunch of crooks.”

This testament corresponds with those of Cecilia Carter, another former foreclosure specialist from the Irvine office, who filed a lawsuit claiming that she was fired for trying to expose the corruption occurring within the company. During her suit, Carter identified Granillo as one of the many accepting the illegal payment.

Whether Granillo will testify about Carter is still unknown, but the two have discussed the kickbacks and the company’s alleged lack of interest in doing anything about them.

While the exact consequences won’t be known until Granillo’s sentencing on May 27, one thing is certain – there is a little less corruption now at Fannie Mae.

What are your thoughts? Do you think there’s widespread corruption within Fannie Mae?

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  • About time!

    • todd key

      To Elizabeth,
      Where do you think a bad apple comes from? A rotten tree! This is typical, the ring leaders fire the whistle blower, and then throw a low level stooge under the bus, then the whole tree survives to fight another day. There needs to be a lot more heads rolling on this scheme. What happened to the AZ broker?
      Todd Key

  • Elizabeth Baskett Ray

    I’ve been a Fannie Mae listing broker for 10 years and have worked with scores of different reps. I have never been solicited for illegal kickbacks nor have I ever been aware or any fraud or corruption in all the years I worked with Fannie Mae. I think this was a bad apple.

  • Shawna Holbrook

    To me it is so concerning that people will do anything for a little bit of money. In the scheme of things, $11,200.00 is not worth time possibly in Federal Prison. I am glad that Carter is standing up against Fannie Mae for this kind of activity and I hope that they nail more of the employess that are doing the same thing is Granillo.

  • Things are slowing down and getting a little better. For about the last two years many agents list their properties very low and go on “Hold” the first day for some time and then show “sold.” It would seem these agents are buying for themselves or selling to someone close. I feel this way because they ignore my well priced offers and calls and the low priced homes don’t get bid up to a normal price. I am really surprised the Fed doesn’t go after these agents who defraud the banks with low appraisals and never really market the property.
    So I am glad to see they got one!!

  • Mary Flores

    One money hungry Fannie Mae Representative doesn’t represent Fannie Mae and its entire Organization!