Mortgage Repurchase and Indemnification Defense & Workout
AMLG’s experienced attorneys and skilled professionals provide a unique perspective in resolving repurchase (buy-back) and indemnification demands. Our firm has handled thousands of loans which have been the subject of repurchase and indemnification demands from major secondary market investors, such as BB&T Bank, Citibank, Flagstar Bank, Franklin American Mortgage Company, JP Morgan Chase, Lehman Brothers Bank (now Lehman Brothers Holding Inc.), and Residential Finance Corporation (RFC). We have also handled cases involving loans purchased by Government Sponsored Entities (GSEs) such as Fannie Mae and Freddie Mac, the U.S. Department of Housing and Urban Development (HUD)/Ginnie Mae, and various other Securitization Trustees.
Mortgage loan repurchase demands have been a problem for loan originators for many years; these problems were only exacerbated by the 2007 sub-prime mortgage loan crisis. The fall-out from the crisis and the bursting of the housing bubble has resulted in a massive increase in loan defaults in recent years. Many investors, GSEs, mortgage insurance companies, and trustees are attempting to mitigate losses by engaging in repurchase demands. These entities are carefully scrutinizing all aspects of governing representation and warranty agreements in an effort to justify such repurchase demands and/or to rescind any applicable insurance coverage they may have issued. Correspondent and wholesale lenders are being required to repurchase loans and agree to make-whole demands or indemnities. Even several years after the crisis has subsided, mortgage loan repurchase demands continue to persist. The tightening of credit and underwriting standards in recent years has led to the increased scrutiny of purchased loans by investors, and the willingness to demand buy-backs or indemnification at the slightest hint of red flags.
AMLG built up its experience in dealing with mortgage loan repurchase demands long before the crisis began. AMLG has its roots in the original Prieston Law Firm, a mortgage law practice founded in Northern California in 1981. AMLG became its own freestanding legal practice in 2006. The firm initially focused on mortgage insurance issues, repurchase demands, and related mortgage fraud issues. Since then, AMLG’s success has allowed it to expand to become a full-service law firm within the mortgage banking industry.
Our attorneys and skilled professionals understand the marketplace as well as the key legal issues surrounding mortgage repurchase demands. AMLG has tried and true strategies for responding to and defending against such demands made on our clients. We understand that litigation is expensive and make it a priority to always exhaust all other avenues open to clients before considering litigation as an option. For information on our case management process and philosophy, click here. Using our ever-growing library of Seller Agreements, Underwriting Guidelines, Case Histories and experienced staff, AMLG is able to offer prompt and cost effective repurchase and indemnification demand related services.