While Bank of America (“BOA”) has not been known to be as litigious as many other investors regarding repurchase demands in the past, we have seen a resurgence lately in correspondence from BOA regarding legacy matters. Over the past few months, many correspondent lenders have approached AMLG about correspondence they received from BOA, wherein BOA was reaching out with the intent to rebuild relationships and amicably resolve legacy matters. While many of BOA’s settlement overtures have been promising, it is important to note that BOA has been using this opportunity to do something that we have not seen much of from any of the major investors to date, which is their indicating that they may begin pursuing damages tied to losses on private label securities, for which BOA alleges it entered into a roughly $8.5 billion settlement agreement during the first quarter of 2016. Though we are not presently aware of any concrete claims having been made in connection with these private label securities, BOA is advising lenders of their potential future exposure, which is alleged to be very significant in many cases. If you are a lender who has received similar correspondence from BOA and/or simply have questions regarding this latest revelation from BOA, please contact Managing Member James Brody by clicking here. We have also seen a spike in repurchase and indemnification demands from both CitiMortgage, Inc. and EMC Mortgage LLC in recent weeks and are also handling many such matters on behalf of our valued clients. The recent uptick in activity goes to show that repurchase and indemnification claims and actions are alive and well and do not show any concrete signs of slowing down anytime soon.
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