This is a blockbuster!
Wanna know why? Because it was AIG United Guarantee that was contracted to perform the loan reviews for FNMA to support put-back demands last year and the year before. Wanna know how I know? Because I requested, had lots of one-to-one conversation with the AIG staff and received a fraud investigation from FNMA of my loan origination. And my suspicions were confirmed, thanks to AIG UG investigators, although in FNMA’s view, the ‘mistakes’ discovered were not ‘material’ (to FNMA).
Here’s my point – AIG UG has seen every nook and crannie of the FNMA 2005-2008 cesspool. They don’t want to have anything more to do with it. Ha!
United Guaranty, the mortgage insurance subsidiary of AIG (AIG: 23.12 -1.78%), said Monday it refuses to accept all of the new HARP refinancing terms based on fears it will end up on the hook for fraudulently written or bad loans.
United Guaranty responded to HousingWire after Bloomberg News said the mortgage insurer refuses to provide blanket waivers on reps and warranties for mortgage lenders trying to get loans through the HARP process. Reps and warrants force originators to buy-back loans that were either poorly or fraudulently underwritten.