Quality Mortgage Services has been performing repurchase defense and rebuttals or responses to indemnification letters before the mortgage periodicals were writing about them in the papers and magazines. Now there are hundreds of post closing quality control companies and consultant who magically appeared who claim to be experts in repurchase defense and loan buy back audits and rebuttals. Think about it… do you want a company to perform a rebuttal on a repurchase claim for you who has only been around since the bust of the subprime bubble? There is too much money at risk to trust these green company in such an endeavor. The owner may have performed repurchase rebuttals while working for a large bank somewhere but what about the staff and auditors? With the volume of repurchase claims that the industry is facing why risk it? Quality Mortgage Services has been addressing repurchase defense and rebuttals since inception and the auditors have proven success.
Some examples of repurchase demand or claim letters may have comments like these:
The selection and use of inappropriate comparables sales or the failure to use comparable sales that are locationally and physically the most similar to the subject property:
Sales one and two were significantly younger in age. Sales more similar in age were available and overlooked.
Sale three was located outside of the appraiser’s defined neighborhood boundaries, significantly younger in age and 20 percent larger in living area. Sales located within the subject’s neighborhood boundaries that were more similar in age and living area were available and overlooked.
The MLS identified four sales from the subject’s immediate neighborhood that were more representative of the subject than the ones used in the appraisal in terms of location and age. Sale prices for these alternative sales range from $190,000 to $193,000 with an average price of $191,500.
Development of and/or reporting an opinion of market value that is not supportable by market data or that is misleading:
Foreclosure and non-market transactions were common in the subject’s neighborhood. The appraisal failed to disclose these neighborhood conditions and analyze their impact on the value and marketability of the subject.
Misrepresentation of the physical characteristics of the subject property, improvements, or comparables sales:
The appraisal indicated that the sale two was in average condition; however, the MLS reported it had upgraded hardwood flooring and new carpet throughout, an upgraded fireplace mantel and professionally landscaped grounds. It was in good condition.