If there is a defect in the loan the bank should not be buying them. Why would you accept that (holder in due course) risk?
Then ask yourself, how do you explain to a regulator, plaintiff's attorney, etc. that "Yes that is what WE reported but THEY did the calculations or documents wrong. We knew it was in error, but it wasn't our fault because we needed these loans."
Certainly there should be repurchase agreements, but that also depends on how many of these errors there could be and the sellers solvency.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell