A recent ruling out of the Eastern District of Missouri on cross-summary judgment motions filed by CitiMortgage, Inc. (“Citi”) and Equity Bank, N.A. gave a partial win to correspondent lenders in defending against repurchase demands from Citi. In a decision that broke from some of the recent precedent out of the Eastern District, Magistrate Judge Shirley Padmore Mensah agreed with an argument previously set forth by the American Mortgage Law Group in prior motions for summary judgment against Citi-that Citi could not, per the terms of the entire Correspondent Agreement Form 200, pursue any “repurchase” demands for loans that had been liquidated prior to Citi issuing a demand. The standard definition of the word, “repurchase”-“to buy (something) again”-formed the basis of this decision because if a loan has been liquidated, there is no loan for a correspondent lender to “repurchase” pursuant to Citi’s demand. This decision affected 6 of the 12 loans at-issue in the litigation.
American Mortgage Law Group’s local counsel in Missouri was involved in this decision. If you would like learn more about how this opinion could affect your company in any dispute with Citi, please feel free to contact Jack Valinoti or Tracy Henderson.