The real estate crash has affected numerous businesses sectors, many of which are still dealing with the consequences of an overleveraged real estate market. Mortgage originators in particular have been confronted with “repurchase” demands by the entities to which they sold loans in prior years – primarily major banks and Government-Sponsored Entities (GSEs), including Fannie Mae and Freddie Mac. What does this mean for the financial sector and broader economy? One law firm that works with loan originators at the heart of the issue is sharing its perspective via a new blog.
Big banks and GSEs are acting as if the originators were somehow “guarantors” of the accuracy of all information provided by the borrowers – even in categories that the originators were not even permitted to verify and despite the fact that they followed guidelines set forth by the banks and GSEs.
Recognizing this trend early on, Bilzin Sumberg developed their expertise in helping companies defend against mortgage repurchase demands. Now, with a robust practice handling major repurchase litigation matters for originators across the country, Bilzin Sumberg Repurchase Team Partners Robert Siegel and Phillip Stein want to share their knowledge and observations through the Mortgage Crisis Watch Blog.
Check out Mortgage Crisis Watch Blog for the latest news headlines related to the mortgage loan repurchases, mortgage-backed securities, and mortgage insurance