New reps and warranties for STACR deals

Freddie Mac
By Ryan Bolger
20 Oct 2014

Clarifications on representations and warranties of mortgages purchased by Fannie Mae and Freddie Mac could apply to the agencies’ risk-sharing deals, a Freddie Mac spokesperson told GlobalCapital following comments by Federal Housing Finance Agency director Melvin Watt on Monday.

Lenders have cited potential liabilities under the reps and warranties of their loans as a reason for not originating mortgages to borrowers without top-notch credit. In a speech at the Mortgage Bankers Association annual convention on Monday, Watt acknowledged that a lack of clarity over reps and warranties ...

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