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Mortgage Banking Newsletter – July, 2018

In this newsletter we cover the following:
  • Complimentary Recording of June 28 Repurchase Defense Webinar
  • Johnston & Associates to hold its third complimentary webinar, “Loan Officer Compensation Tips and Trends: How to Gain a Competitive Edge While Remaining Compliant” on July 26
  • The legal services we offer at Johnston & Associates
  • Upcoming webinars and conferences that Johnston & Associates will be attending
Complimentary Recording of June 28 Repurchase Defense Webinar

On June 28, Johnston & Associates hosted its complimentary webinar, entitled “Repurchase and Indemnification Claims in 2018 and Beyond: A Comprehensive Update”, which was very well attended and an overall great success. For all those who attended our Repurchase Defense webinar, as well as those who were not able to attend due to space or otherwise, we have received a large number of requests for a copy of the webinar recording and are happy to make such available to any and all whom would like to access such. In order to access a copy of the recorded Repurchase Defense webinar, please click on the following link:

Webinar details:

For anyone and everyone who had been forced to address the seemingly endless wave of agency and investor repurchase and make-whole demands that have been made in connection with loans that were originated prior to the mortgage meltdown, we have now come to a point in time where the frequency and intensity of those claims have noticeably slowed. Although our firm continues to defend many correspondent lenders against claims made by a number of the usual suspects (e.g., JPMorgan Chase, LBHI, EMC, CitiMortgage, Franklin American, etc.), both in and out of court, we are now preparing for an entirely new wave of repurchase and make-whole demands that are already beginning to be made in connection with loans that were also originated and sold prior to the mortgage meltdown but which involve private label loans that were placed in RMBS Trusts. Accordingly, in covering those claims that are being made with regard to agency loans, we also addressed the wave of claims that are beginning to be made by JPMorgan Chase (“Chase”) and which we believe will soon be made by Lehman Brothers Holding, Inc. (“LBHI”) in connection with RMBS related loans.

In addition to identifying some of those parties who are presently making these repurchase and/or make-whole claims, some of the many issues that we discussed during this comprehensive webinar include, but were in no way limited to, the following:

  • A comprehensive update on the current status and rulings of repurchase/make-whole lawsuits from all across the country
  • Insightful analyses into the various state and federal laws that govern the resolution of buy-back and indemnification demands (e.g,, Statute of Limitations, Borrowing Statutes, and more)
  • Recommended processes for internally managing the investor and agency claims process
  • An examination of specific investor Loan Purchase Agreements in general, as well as the specific provisions that govern the claims process (e.g., CitiMortgage, EMC, JPMorgan Chase and more)
  • A deep dive into the Lehman Bros. (“LBHI”) Lawsuits in the NY Bankruptcy Court and how to proceed after the possible loss of Defendants’ Motions to Dismiss
  • An overview of the arguments and potential repercussions of the two appeals filed by CitiMortgage in the 8th Circuit Court of Appeals (e.g., Equity Bank and Platinum Mortgage Lawsuits)
  • Various strategies with which to respond to the latest wave of RMBS repurchase and make-whole claims being made by JPMorgan Chase, as well as those expected to be made by LBHI in the very near future
  • Discussing various Third-Party mitigation strategies in order to recoup actual and/or estimated losses (e.g., pursuing appraisers, settlement agents, title companies, borrowers, E&O carriers, and more)
  • Tips to negotiating new, as well as renegotiating current, correspondent loan purchase agreements and sellers guides
  • Setting reserves and planning ahead
Johnston & Associates’s Upcoming Webinar Programs

In order to best serve the interests of Johnston & Associates’s mortgage banking clientele, as well the mortgage banking industry as a whole, all of the professionals at Johnston & Associates are committed to providing complimentary webinars of substance, providing thoughtful analyses and updates on the most pressing legal and industry issues of the day, leading panels at industry conferences, and more.

To that end, Johnston & Associates is pleased to announce that its attorneys will be hosting two new webinar programs in our ongoing series of complimentary webinars, which will generally address the wave of RMBS repurchase and make-whole demands that are flooding the industry and the ever important issue of Loan Officer Compensation.

The first webinar was held on June 28, and handouts are available as mentioned above.

Details on our July 26 webinar is shown below.

Johnston & Associates to host its third complimentary webinar, entitled “Loan Officer Compensation Tips and Trends: How to Gain a Competitive Edge While Remaining Compliant”

Date: Thursday, July 26, 2018
Time: 10:30 a.m. PST / 1:30 p.m. EST
Duration: One Hour

Recruiting and retaining consumer-oriented, high-performing mortgage loan originators has always been difficult. This complimentary webinar, which will be hosted by Johnston & Associates, discusses a topic that can be crucial to companies in gaining and compensating sought after, high performing mortgage loan originators. James Brody, Chairman of Mortgage Banking Practice Group for Johnston & Associates and certain special guest speakers to be announced for this webinar, will provide critical insights for a rule that when some principals seem to just become clear others seem to be murkier than ever before. Some of the many issues that will be discussed during this comprehensive webinar include, but are in no way limited to, the following:

Some of the many issues that will be discussed during this comprehensive webinar include, but are in no way limited to, the following:

  • Stated Purpose of the Rule: Preventing Steering and Protecting the Consumer
  • Nuances of the Rule Continue to Trouble Lenders
  • Utilizing all Tools Available
  • Pooled Compensation
  • LOs that Work as a Team Compensation
  • “Pick a Plan” Structures
  • Can I pay my LO as an Independent Contractor?
  • Splitting Comp Between LO’s
  • Awards of Merchandise, Services, Trips, or Similar Prizes to LOs
  • Mistakes by Our LO’s are Costing us Money-Can We Hold Originators Responsible for Controlling Costs? Are EPO/EPD Clawbacks Permissible? Loan Originator Paying for Unanticipated Cost Increases
  • Quality Loan Factor in LO Comp Plans
  • Non-Producing Managers and Sales Executives
  • Bonuses and Retirement Plans. Bonuses Based on Volume
  • Current LO Comp Regulation and Enforcement

Moderator and Speaker:

James Brody, Esq., Chairman of Mortgage Banking Practice Group
Johnston & Associates, Attorneys at Law, P.C.

Additional Speakers:

To be announced

Legal Services Offered by Johnston & Associates in the Mortgage Banking Industry

Johnston & Associates is a full suite boutique law firm, which amongst other practices such as real estate and commercial litigation, has a nationally recognized Mortgage Banking Practice Group. With an experienced team of mortgage banking lawyers (including senior litigation attorneys, former in-house General Counsel and in-house Compliance Counsel from a well-known bank and mortgage company, etc.), certified fraud examiner and forensic underwriters, and an extremely competent support staff, all of whom are dedicated to aggressively and competently serving the needs of our valued clientele, Johnston & Associates’ Mortgage Banking Practice Group is known all across the country for the experience and results that it brings to the areas of regulatory compliance, mortgage banking litigation, and a broad range of mitigation services.

Amongst the many legal services Johnston & Associates offers the mortgage banking industry (e.g., brokers, lenders, servicers, vendors and more), such include, but are in no way limited to, as follows:

  • Mortgage Repurchase and Make-Whole Indemnification Litigation and Mitigation (e.g., Secondary Market Investors, Agencies, etc.)
  • Mortgage Industry Litigation (e.g., Servicer and Sub-Servicer Disputes, 3rd Party Fraud Recovery, CPL and Title Policy Actions, Appraiser E&O Claims, Loan Officer Actions, etc.
  • Mortgage Repurchase and Make-Whole Alternative Dispute Resolution (e.g., Arbitration, Mediation, etc.)
  • Regulatory Compliance, Administrative and Business Services (e.g., Mock Audits, LO Compensation, MSAs, Licensing, CA Dep’t of Business Oversight, HUD Review Board, etc.)
  • Transactional Matters (e.g., Drafting and Negotiating Broker and Correspondent Loan Purchase Agreements, Mergers & Acquisitions, etc.)

Should you have any questions regarding how Johnston & Associates’ Mortgage Banking Practice Group can be of assistance to you and/or your company, please contact its Chairman James Brody and/or its Co-Chair Ingrid Peterson.

Webinars & Conference Attendance by Johnston & Associates

Johnston & Associates will have a number of its attorneys in attendance and/or speaking at the following upcoming conferences and webinars:

  • July 16-18, 2018: Mr. Brody and certain of his colleagues will be in attendance at the California MBA’s 46th Annual Western Secondary Market Conference in San Francisco, California
  • July 26, 2018: Mr. Brody will be moderating and participating in the webinar, entitled “Loan Officer Compensation Tips and Trends: How to Gain a Competitive Edge While Remaining Compliant”. The webinar will be hosted by Johnston & Associates, along with guest speakers.

If you or someone from your company will also be in attendance at the foregoing conferences and would like to set up a complimentary appointment to meet with Johnston & Associates’ Mortgage Banking Practice Group, please contact its Chairman, James Brody, to schedule a date and time. We hope to see you there!

Although this communication may contain or possibly be considered attorney advertising, it is meant to be for informational and commentary purposes only. As such, it is not intended as legal advice and does not create an attorney-client relationship. Because of the generality of this update, the information and opinions provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. All opinions expressed herein are solely the opinion of the individual author and do not necessarily reflect the opinions of Johnston & Associates Law Firm, its attorneys, or any other individual.

Copyright © 2018 Johnston & Associates, Attorneys at Law, PC, All rights reserved.

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