Mortgage Grapevine

mortgage buybacks

lender has clause that broker may
have to buyback a loan if borrower defaults
or is delinquent up to 6 months.

we said no go;any opinions?
by dblbogey2 January 25, 2013 3:12 PM

U are lucky to have a six months lock out. Most of the lenders wants 12 to 24 months
by mortcloser January 25, 2013 3:31 PM

That is very reasonable.
by the voice of reason January 25, 2013 3:49 PM

It needs to spell out the terms of the buy back. It really needs to say that you only buy it back in the case of misdeeds
by RICHONE January 26, 2013 8:46 PM

thanks,just checking,owner isn't sure
about proceeding.
by dblbogey2 January 28, 2013 11:41 AM

Every wholesale contract I have seen contains a buyback provision of some sort. If you haven't seen these before it's because you haven't read your contract, or you have been working in a retail correspondent environment where your company isn't really the originator and is just being paid a referral fee.
by tmortgan January 29, 2013 8:33 AM


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