Countrywide’s Dilemma

This article provides practical guidance for mortgage loan sellers and originators evaluating, responding to, and negotiating repurchase demands. It outlines steps sellers can take to respond without waiving any rights under a loan purchase agreement.

Sellers of residential mortgage loans face serious financial risks if they sign purchase agreements without careful review. Key provisions on fraud, defaults, materiality, and survival periods can create unlimited liability well beyond any profit earned.

Suzanne M. Amaducci and keynote speaker Jeff Krasnoff, Chief Executive Officer of Rialto Capital Management, discuss the state of real estate debt markets amid ongoing economic uncertainty at Bilzin Sumberg’s 4th Annual Development Conference.