Residential mortgage warehouse providers acting under repurchase or “repo” agreements as buyers should be assured that safe harbors under the Bankruptcy Code will permit them to enforce their rights under repurchase agreements when originators file for bankruptcy, but, in reality, third parties may interfere.
In this Reuters Legal News article, Joseph Cioffi, Massimo Giugliano and Christine DeVito discuss the history of litigation surrounding the structural protections for repo buyers and the practical challenges they face in bankruptcy proceedings.
Read the full article: Repurchase Agreement Redux: Mortgage Loan Originator Bankruptcies Are Back