One major consequence of the subprime and Alt-A mortgage crisis (and the broader wave of borrower defaults throughout the country) has been that loan originators, correspondents, servicers, underwriters, and brokers are facing enormous pressures from larger banks, institutional investors, and government-sponsored enterprises to “buy back” commercial and residential loans. Bilzin Sumberg’s Litigation Group, cross-leveraging legal talent from our Corporate & Tax and Real Estate Groups, has defended billions of dollars of loan repurchase claims throughout the U.S. Additionally, our litigation tactics are unencumbered by conflicts of interest that may occur when firms represent both originators and big banks or GSEs.
Our loan repurchase defense team has successfully litigated and resolved claims nationwide, including in California, Colorado, Florida, Minnesota, Missouri, New York, Pennsylvania, Utah, and Virginia. We have defended over 50 mortgage originators against claims brought by numerous large institutions including Freddie Mac, Fannie Mae, Bank of America, Countrywide Home Loans, CitiMortgage, Wells Fargo, Lehman Brothers Bank, Aurora Loan Services, JP Morgan Chase, SunTrust Mortgage, US Bank, and the FDIC.
Our multi-disciplinary team provides a unified approach to resolving buy-back demands, representing loan originators, servicers and sellers in all phases of the dispute – from pre-litigation risk management and review and investigation of pre-litigation demands through the defense of repurchase claims, whether in litigation or arbitration. Additionally, in an effort to resolve mortgage loan repurchase claims without involving the courts, the team is seasoned in non-litigation dispute resolutions.
Our wealth of experience in being on the other side of the above-referenced banks and institutions frequently allows us to tailor and streamline our defense tactics to provide cost savings to our clients while continuing to maintain the highest standards of aggressive representation.
We are also involved in other aspects of mortgage crisis-related litigation, including mortgage-backed securities (MBS) litigation and litigation involving mortgage insurance companies and the rescission of mortgage insurance.