[BROKERDIRT] LPMI bought by Freddie Mac after origination

[Josef Culik]

Group,

I have a case against Bank of America for violation of the Homeowners Protection Act. We allege that BOA obtained a lender-paid mortgage insurance policy without providing the required disclosures. 

We claim that the failure to provide LPMI disclosures damaged the clients by preventing them from refinancing under HARP (prior to HARP 2.0). The clients say that they would not have obtained the loan had they known that the LPMI would have prevented refinancing. 

BOA's position is that there was no violation because: (1) Freddie Mac purchased the policy; and (2) the policy was purchased 15 months after origination in Freddie Mac's name. 

I have been reviewing the servicing guide but I am unable to find any reference to any requirements for purchasing LPMI. I am looking for some authority that BOA would have purchased the policy on behalf of Freddie Mac, but I am not coming up with anything. 

Can anyone provide some insight on how, and why, this LPMI policy would have been purchased so long after origination?

Thanks,

Joe Culik

-- 
Josef C.Culik  |  Attorney at Law
CULIK LAW PC  |  Champion Your Rights®
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