Lehman Brothers Holdings is suing Fairway Independent Mortgage Corp. alleging the Wisconsin mortgage bank misrepresented borrower debt in loans the now-defunct investment bank acquired. Lehman is also alleging that Fairway now won’t buy back the bad debt. Lehman bought several mortgage loans from Fairway that the holding company feels had “material problems,” such as misrepresentations of a borrower’s debt. According to the complaint, “this was a material breach of Fairway’s representations, warranties and covenants” outlined in a seller’s guide, according to Wisconsin Western District Court documents procured by HousingWire. The cited seller’s guide also said that in the event of a breach of contractual agreement, Lehman has the right to demand a repurchase of the questioned loans. Fairway refused to repurchase the mortgage loans it sold to Lehman, according to the complaint. This is just one of the cases Lehman Brothers is bringing against banks it worked with before going bankrupt in 2008. Last week, Lehman sued Nationsfirst Lending Inc. for failing to honor repurchase contracts on faulty mortgage loans. The holding company also sued Canadian Imperial Bank of Commerce in September to recover more than $3 billion it lost in its bankruptcy filing. Fairway Independent is a based in Sun Prairie, Wis. and did not return requests for comment on the case. Write to Christine Ricciardi.
Lehman Brothers sues Fairway Independent over repurchase agreement
Most Popular Articles
Latest Articles
Spring housing market gets more inventory
We’ve now had back-to-back weeks of healthy housing inventory growth, making spring 2024 much healthier than spring 2023.
-
The best real estate podcasts for agents and brokers in 2024
-
Home sellers saw their profits shrink in the first quarter: Attom
-
If reelected, Trump could seek greater control over Federal Reserve
-
Acra CEO Keith Lind on staying the course amid choppy waters in non-QM
-
HUD walks back some proposed changes to HECM for Purchase program