A mortgage seller’s or originator’s failure otherwise refusal so you’re able to honor the repurchase obligations could lead to loss you to, on the total amount not covered by borrowing from the bank service, could possibly get negatively impact the submit to readiness of your bonds granted from the believe

But subparagraph (c) to me is the most telling. This is an admission that the trust and trustee may not have a claim against a mortgagor for money made to the mortgage loan seller, while it is acting as the existing mortgagee of record.

Any home loan not very repurchased otherwise substituted for will stay to be kept because of the faith and people relevant losses often be used on brand new relevant borrowing from the bank service, to the the amount offered, and you may if not to 1 or more classes away from bonds awarded from the brand new trust

When your dealers have no states resistant to the individuals, and you may WMB can keep the loan repayments for itself, the trusts never possessed the latest mortgage loans and you may notes at the time the fresh new trusts are produced, and knew they. Continue reading →