A lawsuit brought by Lehman Brothers Holdings against Fairway Independent Mortgage Corp. concerns only one loan originated in April 2006, Fairway’s CEO said Tuesday, in response to the lawsuit. “We originate between 16,000 and 17,000 loans a year. This is about one loan,” Fairway CEO Steve Jacobson told HousingWire Tuesday. “I think that’s very important to understand.” Lehman Brothers is suing Fairway for misrepresentation of the borrower’s debt with regard to that loan. Lehman also alleges that Fairway violated the repurchase agreement between the two firms. The loan was a cash-out refinance, stated-income loan worth $291,000 with an 80% loan-to-value ratio, according to Fairway. The borrower was located in Florida at the time the loan was originated and, according to Jacobson, the loan product at the center of debate doesn’t exist anymore. Jacobson said Fairway’s quality control division is rebutting the Lehman accusation filed on Nov. 19 by “collecting the facts” and preparing a response to the holding company about the repurchase. Write to Christine Ricciardi.
Lehman’s Fairway lawsuit concerns one cash-out refinance loan
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