What Tools Are Necessary to Reduce the Risk

Recently, many mortgage originators, risk managers and other real estate professionals have seen an influx in the number of repurchase requests they are receiving. In fact, according to HousingWire, they indicated that while SEC filings for the number of repurchase demands dropped from Q3 2022 to year end 2022, the repurchase numbers are still high.[1]

These requests can be due to a variety of reasons. According to a recent article in DS News, “Repurchase risk is the result of the lack of documented precision when home loans are manufactured.”[2] As the importance of precise documentation grows, it’s necessary to have the right tools in place. Mortgage originators and risk managers, “have the unique ability to engage the borrower to solve for solutions, when supported by tools that organize, present, and validate the data. The challenge is that humans need better systems to support performing this valuable service uniformly, accurately, and inexpensively.”[2]

What tools are available to mortgage originators and risk managers to help document and help reduce the risk of repurchases occurring at all? Several tools exist that offer support with in-depth quality control at origination, appraisal value validation, and thorough documentation for a repurchase rebuttal. Understanding the available tools is only step one. Step two is finding a knowledgeable and trustworthy supplier of best-in-class solutions.

homegenius Real Estate offers effective technology that helps to mitigate the valuation risks of repurchases. geniuspricePro+ combines sophisticated automation utilizing MLS access with user-driven input to provide quality control on every appraisal. Valuation Risk Review (VRR) is a USPAP compliant and Fitch-approved product that consists of using an appraiser to review an appraisal and provide a risk rating and an independent value, if applicable. Leverage these two solutions to do in-depth quality control upfront and help limit the risk of repurchases, or already have the thorough documentation ready if a repurchase request is made. Either way, feel more confident during origination and be prepared to handle potential repurchase situations.

Learn more about how homegenius Real Estate can help you reduce the risk of repurchase.

[1] https://www.housingwire.com/articles/agency-loan-repurchase-strategy-sparks-pushback/

[2] https://dsnews.com/featured/05-09-2023/brace-trifecta-of-risk