repurchase agreement 101 (47)
purchase and sale agreement
1. investors criticize servicers
2. servicers fail to take immediate steps to control losses
3. lenders faced with repurchase demands, doesn't get opportunity to investigae alleged defect and challegen investors action to assure good faith and fair dealing covenants per purchase and sale agreement. whether servicing tasks were performed properly. need to be aware of repurchases as a result of the hfailure of investor's servicing agents to do their job properly. lender shouldn't have to insure due to the negligence of the servicer.
Scheduled principal and interest, less a servicing fee (remitted the current month)
Unscheduled principal (curtailments and payoffs remitted the month following receipt)