The mortgage industry has had to tackle the immense challenge of higher loan-repurchase requests coming from the government-sponsored enterprises (GSEs). This is adding further pressure on the already stretched balance sheets of lenders.
The most recent wave of loan-repurchases originated from the GSE’s obligation to adhere to representation and warranty requirements as well as their commitment to help homeowners. Since regulations have been imposed to ensure stringent compliance of such requirements from lenders, IMBs are likely to face heavier costs and a larger volume of repurchases.
Main Elements:
• Loan-repurchase requests from GSEs have added to the pressure of lenders’ balance sheets
• GSEs’ obligation to adhere to representation and warranty requirements and help homeowners
• Regulations enforced on lenders to comply with such requirements
• IMBs likely to face higher costs and larger loan-repurchase volumes
You can read this full article at: https://www.housingwire.com/articles/agency-loan-repurchase-strategy-sparks-pushback/(subscription required)
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