Mortgage Repurchase Defense and Indemnification Issues
Although the financial crisis is now over and repurchase demand volume has dramatically decreased, we gained invaluable experience from the thousands of repurchase and indemnification demands that we handled both in mitigation, litigation and settlement. This deepened our understanding of the nuances of warehouse lending arrangements, mortgage insurance policies, underwriting guidelines, loan purchase and broker agreements, servicing errors and many other areas.
Our attorneys have defended clients against lawsuits and other claims from the predominant secondary market investors at the time, including CitiMortgage, Bank of America, BB&T Bank, Chase, Franklin American Mortgage Company, and Residential Funding Company (now ResCap). In addition, we handled a large part of the tidal wave of mitigation cases arising out of repurchase demand claims made by government sponsored entities such as Fannie Mae, Freddie Mac, HUD and other aggregators. Having navigated the complexities of multiple layers of guidelines, agreements, statutes and regulations, we are well prepared to safeguard our clients against these risks in the future.
We are able to provide our clientele with a full range of mortgage-related litigation services and have represented clients in the following areas:
- State lending and consumer protection law
- Federal lending statutes including TILA and Regulation Z: Truth in Lending
- HOEPA (Home Ownership and Equity Protection Act of 1994)
- CFPB Regulations Integrating TILA and RESPA
- Fair Housing Laws
- Dodd-Frank’s lender obligations during loan underwriting
- Appraisal Standards
- Negligent or Fraudulent Appraisals
- Common Law Remedies
- Anti-deficiency issues
- Workout Strategies on Residential Loans
- Bankruptcy of borrower or investor
- Title Claims
- Mortgage Insurance Rescission
- Loan Modification
- Mortgage Fraud
- Borrower Claims
Agency Audits and Regulatory Compliance
We provide strategic advice to clients including independent banks, credit unions, and mortgage brokers on how to comply with the myriad federal, state and agency requirements, including the following.
We advise on Federal compliance including the Bank Secrecy Act (BSA), Community Reinvestment Act (CRA), Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Equal Credit Opportunity Act (ECOA), Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), Fair Housing Act (FHA), Flood Disaster Protection Act (FDPA), Gramm-Leach-Bliley Act (GLBA), Home Mortgage Disclosure Act (HMDA), Home Ownership and Equity Protection Act (HOEPA), National Flood Insurance Protection Act (NFIP), Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act (TILA), and the USA PATRIOT Act.
We also advise on state mortgage banking, real property, consumer protection, and consumer finance laws, nationwide. We have experience with the interaction between various levels of law and regulation and preemption issues.
We provide the following services:
- Conduct loan audits
- Perform due diligence reviews of quality control systems
- Provide in-house training
- Plan implementation strategies and roll-out for new regulations
- Draft legal opinions on the origination, servicing, acquisition, and sale of first and second lien mortgage loans
- Resolve issues with NMLS licensing
Contracts and Transactions
We review, draft and revise and advise on the following types of agreements:
- Broker agreements
- Loan Purchase agreements
- Warehouse Lending agreements
- SaaS and Enterprise Software agreements
- Indemnification and Settlement agreements
- General Commercial contracts