AMLG has been contacted by several new and existing clients reporting a significant increase in repurchase and indemnification demands from both CitiMortgage, Inc. and EMC Mortgage LLC. While AMLG has been assisting numerous clients in negotiating such demands from CitiMortgage for a number of years, the spike in demands from EMC (formerly known as EMC Mortgage Corporation and a current affiliate of JPMorgan Chase Bank) has been somewhat more unexpected.
CitiMortgage has become much more aggressive in aggregating what it believes are all outstanding demands to correspondent lenders even if that means reviving demands that have been dormant going on four, five, or even six years. It appears as though CitiMortgage may be gearing up for a new wave of litigation or may simply want to clear as many of these claims off its books as possible before the end of the year. When faced with such demands, AMLG has been assisting its clients to do everything possible to negotiate the best possible outcome, including providing counsel on which claims should be barred by the applicable statute of limitations. While CitiMortgage maintains otherwise, it appears clear to AMLG that many of CitiMortgage’s demands, at least on the face, are now time barred. AMLG has also developed unique and, as of yet, untested arguments relating the accrual date for CitiMortgage’s claims.
While Chase has become less and less aggressive in pursuing repurchase and/or indemnification, it appears EMC has been ramping up its repurchase and indemnification practice and has begun filing lawsuits in several different jurisdictions around the country. Given the variety of jurisdictions in which EMC is pursuing these claims, EMC may also be concerned about the expiration of the relevant statutes of limitation and AMLG is currently working hard to seek ultimate dismissals on that basis for its clients.
If you are a correspondent lender who has experienced an uptick in demands from either CitiMortgage or EMC, please contact Managing Member James Brody by clicking here.