Buyback Strategies for 2012
An Inside Mortgage Finance Webinar
Recorded March 6, 2012
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CLICK HERE to download the MP3 file and Conference Manual ($360)
Although mortgage buybacks fell last year, banks still reported more than $20 billion in repurchases and indemnifications, according to preliminary numbers compiled by Inside Mortgage Finance. And it wasn’t just the big guys that were asked to buy back problem mortgages last year as hundreds of smaller institutions were also forced to deal with repurchase requests.
Will the buyback wave that has virtually drowned the mortgage industry over the past several years finally subside in 2012? Or will buybacks be an unfortunate fact of life for the foreseeable future? Hear from a panel of experts about the buyback outlook and what lenders are doing to reduce risk.
Most past repurchase requests have involved pre-2009 mortgages, particularly those made in the loose environment of 2005-2007. This year buyback requests should theoretically drop as the focus shifts to the performance of mortgages made with the much tougher underwriting of the past several years. But Fannie Mae and Freddie Mac are increasing their scrutiny of newer, performing mortgages and seeking buybacks where underwriting mistakes are uncovered. And investors in non-agency MBS are stepping up their efforts to hold lenders accountable for defaulted mortgages made years ago.
Mortgage lenders are responding by imposing their own underwriting rules on top of the already stringent Fannie and Freddie standards in place. Do these overlays really reduce buyback risk going forward or do they just limit the volume of new mortgages being made? Find out what’s happening now.
Topics to Be Addressed:
- What do the newest IMF buyback data tell us?
- What steps can lenders take regarding quality control and compliance reviews?
- Why are lenders skittish about repurchase liability with the new HUD lender indemnification regulations?
- What types of rule infringements are triggering buyback requests?
- What are the major reasons for repurchase requests and how many are successfully appealed?
- What strategies are being employed to reduce buybacks in the future?
- How can smaller lenders handle repurchase demands?
- What is the buyback risk to correspondent lenders?
- How to deal with the GSEs, FHA and non-government buyback requests?
These industry experts share their insights and answer questions:
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Kim Garland United Guaranty Corp. The mortgage insurer perspective and UG’s relevant new product. |
Brian S. Levy Katten & Temple, LLP How you can assess and manage your exposure. |
Paul Miller FBR Capital Markets The problems the repurchases are causing and policy issues. |
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Justin Vedder Arthur J. Gallagher & Co. Quality control, claims and contract issues. |
Guy Cecala Inside Mortgage Finance Presenting IMF’s exclusive new data charts on GSE mortgage buybacks and buyback requests. |
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CLICK HERE to download the MP3 file and Conference Manual ($360)
