A defunct financier home point has filed a lawsuit against seven correspondent mortgage lenders alleging breach of contract for failing to repair loan defects or buy back loans in accordance with the terms of the correspondent agreement.
Homepoint was forced to repurchase 10 individual loans that did not comply with GSE guidelines for delinquency and misrepresentation from secondary market investors. fannie mae and freddie macaccording to lawsuits filed between January and June 2023, United States District Court for the Eastern District of Michigan.
Corresponding Lender – AHL Funding; amres; Continental Mortgage Banker; Fidelity Direct Mortgage; rent 3dd; loan factory and Trans United Financial Services – Home Point is said to have more than $4.6 million in debt, excluding interest and legal fees.
Financial institutions, except Trans United, have been accused of not buying back six-figure loans. As for Trans United, Homepoint is seeking $1.7 million in three loans it said it purchased for California real estate.
According to the complaint, Homepoint sent notices of repurchase obligations, requiring the lenders to repair the loan defects or repurchase the loans as necessary in accordance with the terms of the correspondent agreement.
The complaint alleges that, despite Homepoint’s notices and demands, the lender failed to repair the loan’s defect or failed to redeem the loan as required under the contract.
Lawyers representing the financial firms accused of Homepoint did not respond to requests for comment.
The clerk entered default judgment for failure to plead or otherwise defend AHL Funding and Lending 3 and entered judgment in favor of Homepoint in the amounts of $752,401 for AHL Funding and Lending 3 and $523,630 for Lending 3. I went down.
After a myriad of challenges, including low capital levels, underwriting issues, and technical issues with the loan origination system, Home Point Capital announced in April that it would sell its wholesale origination business. loan store.
Homepoint was previously the third largest wholesale financier in the country, then next in size. United Wholesale Mortgage (UWM) and rocket mortgageaccording to Inside Mortgage Finance.
In May, Home Point Capital announced that it would sell the company to: Mr Cooper Group $324 million in cash.