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Abstract: 

Although more than half a decade has passed since the United States housing/mortgage market imploded, the onslaught of residential mortgage loan “repurchase” claims against loan originators continues largely unabated. While some of the repurchase claims brought by mortgage aggregators and their investors may indeed have been valid, the author believes that most were made by mortgage loan purchasers in an attempt to rewrite history. Particularly at this late date, the author believes that defenses such as statute of limitations should have eliminated virtually all of these claims. However, often due to reasons such as judicial expediency, political motivations, and the frequent lack of competent presentation of the issues to courts by counsels to originators, the claims continue. This article stresses the importance of mounting a vigorous defense on the part of originators against such claims, and touches on many of the considerations to take into account when an originator is faced with this type of claim.

Keywords: residential mortgage loans; mortgage aggregators; mortgage originators; loan repurchase demand; loan documentation; loan-level claims; standing; statutes of limitations

Affiliations:  1: Bilzin Sumberg.