Battling Buybacks MP3 and Manual
An Inside Mortgage Finance Webinar Held
Thursday, October 6, 2011
The mortgage industry’s woes with repurchase demands from Fannie and Freddie are far from over, and the non-agency buyback requests are just getting started. With the GSEs, the MIs and private label investors on the attack, lenders are fighting back. Five major lenders reported a combined $19.26 billion of buyback claims outstanding at the end of June.
Listen to this webinar from Inside Mortgage Finance to learn the current state of affairs and to hear from experts with experience in the battle.
The panel discussed strategies and approaches, as well as update us on current repurchase developments. For instance, non-agency investors are going down to the loan level files to find every originator in an MBS. It will also explore the change in dynamics among the parties and how the repurchase rebuttal and negotiation process differ.
The GSEs realized $4.1 billion in repurchases and indemnifications during 2Q11, up 46 percent from the first quarter. Fannie Mae said it had $9.6 billion buybacks outstanding as of the end of June. Bank of America accounted for over half of the GSE’s requests. The experts discussed the latest developments in the monoline suits and what they mean for bank, trustees and private investor lawsuits.
These Experts Shared Their Insights and Answered Questions:
- Michael Waldron, Partner,Patton Boggs
- Talcott Franklin, Shareholder, Talcott Franklin P.C.
- Isaac Gradman, Managing Member of IMG Enterprises
and author of The Subprime Shakeout law blog
- Guy Cecala, Publisher, Inside Mortgage Finance
Topics addressed were:
- What’s the involvement of federal and state regulators?
- What the latest on investor and regulator strong-arming of Trustees?
- What are the top loan issues cited when buybacks are demanded?
- How successful have others been in resisting demands?
- What recourse do you have if you feel the request is unwarranted?
- What could a repurchase cost a bank on a $200k loan?
- What are likely reasons for private-label repurchases?
- What’s the status of MI rescissions?
- What are the agencies and MIs scrutinizing to demand repurchase?
- Are more investors going to demand servicer termination?
- What percentage of a buyback request can a firm expect
to get reduced?
- How will recent buyback settlements affect the future?
- What are the disclosure requirements being advanced by the SEC?