Relevant:
2010-12-01 — bloomberg.com
"Bank of America Corp., battling demands for almost $13 billion of refunds from mortgage investors, reported that the fastest-growing group of claims involves loans to people with the best credit scores."
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Mr. X at 21:47 2010-12-01 said:
The majority of these repurchase requests involve mortgages not disclosed at origination. Like all the lenders they're probably arguing materiality (if the borrower made 24 payments, does the undisclosed mortgage really matter?), or whether red flags were present at origination that weren't addressed by the underwriter or essentially arguing if the uw did their job at origination it's not the banks fault the borrower lied to them as well. Too bad we don't know how successful the lenders are with this approach. Personally I believe the larger problem won't be the GSE's but the MI Companies rescinding coverage. Permalinkadd a comment | go to forum thread
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