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#2258062 - 08/11/21 05:03 PM Loan Portfolio Purchase and Closing Disclosure
Everest Offline
Gold Star
Joined: Jan 2012
Posts: 293
I am just trying to get a jump on things I should know (and obviously don't) about purchasing a portfolio of 1st lien mortgage loans. When it comes to the Closing Disclosure does anyone know if you can include a clause that basically states that the seller is responsible for any violations/cures that may arise if the CD was done incorrectly and requires a tolerance cure in the purchase agreement of the portfolio? Would it even hold up? Even if it was found after 60 days from the origination. Or does the purchaser of such portfolio become the now owner of such expenses?

Any insight would be appreciated.

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Lending Compliance
#2258074 - 08/11/21 06:16 PM Re: Loan Portfolio Purchase and Closing Disclosure Everest
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 81,346
Galveston, TX
Commonly referred to as a "put-back" provision. Something is found wrong with the loan documentation, the seller agrees to repurchase it. Happens all the time in the secondary market. Of course the seller has to still be around for that to work.
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