Loan Mods vs. Reps & Warranties; More on RESPA; Higher Priced Mortgages; Indiana & Appraisers
Posted To:Pipeline Press
Here is an interesting question for anyone who sells a loan to an investor/servicer: If the loan is modified, are you, as the seller, still “on the hook” for the reps and warranties you gave when you sold the original loan? Servicers use the Home Affordable Modification Program (HAMP) and other non-HAMP modification efforts to avoid foreclosure whenever possible and keep borrowers in their homes. Some servicers, such as Wells Fargo, may have a policy that states “we consider loan modification activities intended to keep borrowers in their homes, and pursuit of remedies for a breach of Representations and Warranties under the Loan Purchase agreement, to be distinct and independent events.” So if a loan undergoes loss mitigation (like a modification of unpaid principal balance…(read more)
This mortgage update is brought to you by: Rob Chrisman – You can read the full article at Loan Mods vs. Reps & Warranties; More on RESPA; Higher Priced Mortgages; Indiana & Appraisers
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