Managing Buyback Risk in a New Lending Environment
An Inside Mortgage Finance Webinar
Recorded November 5, 2013
The specter of buybacks has continued to haunt the mortgage industry, despite this year’s implementation of a new Fannie Mae and Freddie Mac representations and warranties framework that promises repurchase relief with a three-year sunset on liability.
While the true impact of the new buyback policy is still to be determined, the new procedures have brought greatly increased scrutiny of new mortgages guaranteed by the government-sponsored enterprises.
Rather than waiting for a loan to default before examining it, Fannie and Freddie are now electronically validating all new production and performing additional reviews on tens of thousands of performing mortgages each month.
The increased attention to newer production shows in loan-level data reported by the GSEs to the Securities and Exchange Commission and analyzed by Inside Mortgage Finance. Unlike in years past, the GSEs are initiating more buyback requests on new production and engaging in more back-and-forth with lenders over the requests.
Hear about Freddie’s and Fannie’s current review processes and learn how you can manage your quality control to reduce buyback risks on new business with the Inside Mortgage Finance webinar “Managing Buyback Risk in a New Lending Environment.”
You’ll hear from:
- Stephen Spies, Vice President, Fannie Mae
- Chris Mock, Vice President, Quality Control, Freddie Mac
- Jonathan Jaffe, Partner, K&L Gates
- Michael Dawson CFA, Vice President, Customer Business Services, Freddie Mac
During the 90-minute webinar, you’ll learn:
- What the current mortgage review process is at each of the GSEs,
- What you need to do to meet new quality control guidelines,
- The primary reasons that a repurchase request is generated,
- What steps you can take to resolve repurchase requests on new mortgages, and
- How you can improve your quality control and keep your loans from drawing a buyback request in the first place.