Mortgage Loan Put-Back Management

The mortgage loan put-back issue has become one of the largest problems facing the financial services industry today.   Investors face a daunting task in allocating resources to this process which is time consuming and costly.  Boston Portfolio Advisors, Inc. (“BPA”) has significant and deep experience in identifying loans for repurchase, reviewing Purchase and Sale Agreements (“PSA’s”), analyzing loan files, and implementing a repurchase demand process that is second to none.  BPA’s in depth experience includes securitized loans, whole loans, and participations.

BPA has successfully handled many different types of repurchase claims which may include one or a combination of:

  • Misrepresentation of credit
  • Misrepresentation of income and/or employment
  • Misrepresentation of assets
  • Misrepresentation of occupancy
  • Unsupported property values, or property value inflation and misrepresentation
  • Undisclosed liabilities
  • Identity theft
  • Property flips
  • Diversion of sales proceeds
  • Underwriter negligence in evaluating loan reasonableness and layered risk
  • Egregious payment shock
  • Fraud
  • MI rescission.

BPA’s repurchase demand process does not stop at the issuance of a repurchase demand, but instead focuses on achieving high level results which far outweigh the cost.  BPA will work independently or in conjunction with client counsel to:

  • Review loan files and issue appropriate and well supported repurchase demands including documented data integrity testing
  • Reply to the seller by issuing well supported responses to rebuttals
  • In instances of repeated seller rebuttal, BPA will issue sur-rebuttals as necessary
  • BPA will develop a system to track repurchases, rescissions, and open demands
  • The process is designed to serve as a basis for legal action should it become necessary
  • BPA is prepared to serve as an expert witness to support any subsequent legal action.

  

Ancillary Services

MI Tracking and Support– BPA will review MI rescissions and supporting documentation to determine just cause for a repurchase demand, or alternatively rebut the rescission.  BPA has deep experience with interacting with the MI companies and is well versed in MI company practices and procedures.  MI claim management includes:

  • Tracking MI findings letters
  • Independent analysis of the loan in question and issuing a rebuttal if appropriate
  • If a rebuttal is deemed inappropriate, BPA will alternatively utilize the MI rescission as further grounds for repurchase
  • Monitor and track MI rescission reversals and claims payments
  • Monitor and track MI rescinded premium refunds.

Repurchase Modeling – BPA has the ability to model seller repurchase behavior to determine repurchase bias as well as optimally select loans for repurchase review.

Monitoring and Tracking – BPA will build customized tracking systems to monitor receipt of repurchase funds and ensure timely delivery.

 

Contact Us

For additional information on Mortgage Put-Back Management, please contact:

Desiree Daly at 954-832-3558 or ddaly@bostonportfolio.com