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Banks’ After-The-Fact Appraisals Fuel Buyback Demands
Justin T. Hilley of HousingWire.com reports that audits done by Quality Mortgage Services (“QMS”) “indicate that many demands by financial institutions that lenders buy back mortgages are based on...
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FHFA Announces Representation and Warranty Framework
Lack of Certainty Facing Lenders Last week, the Federal Housing Finance Agency (FHFA) announced a new “representation and warranty framework” for conventional loans sold or delivered to Fannie and...
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New Fannie Mae Guidelines
Verification Of Income Not Required For Refinancing Fannie Mae recently released a program offering an alternative to documenting income for Refi Plus loans where the change in the amount of the...
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Are Mortgage Repurchase Demands a Case of Revisionist History?
As we noted in a previous blog post, we believe that big aggregators of residential mortgage loans are attempting to revise history when they claim that they believed all along that all risk of...
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Loan Originators Be Warned: Not All Errors Justify Buyback Demands
At last week’s Mortgage Bankers Association (MBA) annual conference in Chicago, Bob Siegel and I attended a panel discussion on “preventing buybacks.” Virtually the sole focus of that session was on...
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Gotcha! Originators Beware of Baseless Claims
Baseless Claims Just about every time I think that the demands being asserted on residential mortgage loan originators for mortgage loan “repurchases” or indemnification payments (on account of loans...
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Mortgage Foreclosure Settlement
Skepticism We have long been skeptical of most loan “repurchase” or “indemnification” demands made by big banks against the third-party originators (i.e., correspondent lenders) who sold those loans to...
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ZOMBIE TITLE
Think your house has been foreclosed? Think again… As reported by Michelle Conlin at Reuters, when banks fail to follow through on foreclosure of homes, this has serious, often dramatic ramifications...
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Important Buyback Victory
Order Severing Claims and Requiring Supplemental Briefing There was a very favorable development recently in one of my buyback cases. The federal district court in Miami issued a final order that has...
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Bank of America Settlement in Jeopardy?
Bank of America’s $8.5 billion settlement in 2011 to resolve claims over Countrywide’s mortgage abuses may be in jeopardy. Last week, a group of investors, the Triaxx funds and the Federal Home Loan...
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TBTF Servicing: Another Issue for Originators to Consider
Shocking Statistics from Foreclosure Review As widely reported recently, close to 1.2 million borrowers (about 30% of the more than 3.9 million households that faced foreclosure proceedings by the 11...
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Loan Modification and the Failure to Mitigate Damages
Freddie Mac Streamlined Modification Freddie Mac has announced the immediate implementation of its Streamlined Modification program, a no-document modification program offered to severely delinquent...
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Federal Judges Refuse to Permit “Shotgun” Style Mortgage-Buyback Lawsuits...
Lehman unsuccessfully attempted to consolidate repurchase claims Earlier this year, a United States District Court judge for the Southern District of Florida (Judge James Lawrence King) severed and...
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Citigroup Resolves Mortgage Buyback Dispute with Fannie Mae
$968 Million Settlement During the aftermath of the financial crisis, Fannie Mae and Freddie Mac have been aggressively demanding that Wall Street and big bank aggregators repurchase millions of...
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Proposed new rule under Dodd-Frank Act
Key exemptions in the Dodd-Frank Act allowed lenders to securitize risky mortgages In 2011, in an effort designed to prevent a repeat of the often times shoddy underwriting practices that were...
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Federal Criminal Investigation of JPMorgan
Preliminary conclusions suggest that JPMorgan may have broken federal laws with its sale of mortgage securities The civil division of the Justice Department has preliminarily concluded that JPMorgan...
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Private Mortgage Insurers Return to Profitability after Housing Crisis
Best Quarter Posted in 6 years It should be no surprise that the private mortgage insurance industry was nearly decimated in the wake of the housing crisis. During that tumultuous time, the private...
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Judge Limits Damages Recoverable On Repurchase Claims
“Purchase Price” used as contractual measure of damages In an opinion refusing to dismiss a lawsuit by several RMBS mortgage trusts in connection with $1.6 billion of mortgage loans, Judge Harold...
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Upcoming MBA Regulatory Compliance Conference: September 29 in Washington, D.C.
I will be a panelist at the Mortgage Bankers Association’s (MBA) upcoming Regulatory Compliance Conference 2013 in Washington, D.C. I will participate in a session on Monday, September 30 at 1.30 p.m....
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Wells Fargo Settles Mortgage Buyback Litigation with Freddie Mac for $869...
Under Threat of Having to Repurchase Thousands of Home Loans Sold to Freddie Mac Prior to January 1, 2009, Wells Fargo Agrees to Resolve all Remaining Claims in a Single $780-Million Cash Payment As of...
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