(Washington, D.C.) – Community Home Lenders of America (CHLA) commends Freddie Mac and FHFA Director Sandra Thompson for their leadership in bringing balance to repurchases and indemnifications. Subjecting lenders to a fee-based structure based on non-acceptable quality (NAQ) rates rather than repurchases on performing loans combined with borrowers’ retainment of their loss mitigation rights ensures that current and future borrowers are the real winners.
In May, CHLA sent a letter seeking a more balanced approach to these loans, requesting that FHFA and the Enterprises “adopt a uniform policy of offering an indemnification at a reasonable level – in lieu of the practice of a repurchase demand – for all performing loans.”