Author: Jason Goldsmith, Esq. Goldsmith Associates PLLC

Which representations and warranties provisions determine the duration of a mortgage seller’s buyback exposure? A mortgage seller’s long-term buyback exposure is primarily determined by six critical contractual provisions: the compliance-with-law representation, the defined survival period, the sole-remedy clause, the materiality and adverse-effect qualifiers, knowledge constructs, and structural notice and cure timelines. Negotiating these interlocking levers…

How does an indemnification cap protect sellers in residential whole-loan and MSR transactions, and why should buyers negotiate it? An indemnification cap limits a seller’s aggregate financial liability for representation and warranty breaches to a fixed dollar amount or a set percentage of the total purchase price. While sellers rely on these structural ceilings to…