Connecticut: Repurchase Agreement Applies to Fraudulent Loans that have been Declared Invalid
Posted on Thursday, May 04, 2006
by Geoffrey Milne
In the case, a borrower sued the original lender and its assignee, claiming that a $419,697 mortgage loan was fraudulent. The trial court declared the loan to be null and void, and on that basis declined to award damages for the loan amount on a cross-claim by the assignee against the loan originator, in accordance with a contractual indemnification agreement.
This judicial decision is very useful to lenders who are seeking to enforce repurchase obligations in mortgage fraud cases, as the original lender in this case ignored that commitment.
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