Non-Agency Servicers Urged to Complete Loss Mitigation to Avoid Buyback Fights
October 7, 2011
Investors in non-agency mortgage-backed securities would rather not fight in court to enforce buybacks, according to Talcott Franklin, shareholder of his namesake law firm. However, Franklin said litigation has been necessary because servicers largely those affiliated with lenders or MBS issuers have not done enough to prevent losses. If the banks can get it together on the servicing side and try to reduce these losses, that is going to be the best way for them to proactively reduce these [buyback] risks, he said this week during a webinar hosted by Inside Mortgage Finance Publications. ...