Credit Plus in Salisbury, Md., has introduced loan repurchase insurance for mortgage lenders and servicers that use its verification products.
Lenders can purchase this coverage that will kick-in if the loan defaults and the secondary market investor looks to use contractual representations and warranties to force them to buy the loan back.
The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency have both said lenders are responsible for the acts of their
"While we are confident in the quality of our verification services, we are also a strong proponent of best practices," said Greg Holmes, national director of sales and marketing at Credit Plus in a press release. "This coverage helps our customers better meet CFPB and OCC expectations and demonstrate the rigor with which they are managing third-party risk," he added. "At the same time, this protection will give them greater assurance and peace of mind."
