"Sun West initially made a deal with First Mariner Bank in March 2011, acquiring the servicing rights for a portfolio of 2,200 reverse mortgage loans owned by Fannie Mae. First Mariner was sold in 2018 to Howard Bank, which was later acquired by FNB in 2022. In May 2017, Sun West and First Mariner settled a lawsuit over issues stemming from the transfer, requiring First Mariner to repurchase certain reverse mortgages. Sun West asserts that as First Mariner's successor, FNB is bound by that agreement."
"According to the complaint, Fannie Mae determined that one loan, originated in October 2007, was misrepresented as a first lien and requested a repurchase. Sun West contacted FNB regarding the matter, but the bank did not repurchase the loan, prompting Sun West to do so for $339,727.25. Another loan was found to have a mortgage eligibility issue. Sun West repurchased it from Fannie Mae for $513,661.82."
A lawsuit was filed Oct. 28 in the U.S. District Court for the Central District of California. Sun West alleges FNB, as successor to First Mariner Bank, failed to comply with a May 2017 settlement requiring repurchase of certain reverse mortgages. Sun West acquired servicing rights for a portfolio of 2,200 Fannie Mae reverse mortgage loans from First Mariner in March 2011; First Mariner was sold to Howard Bank in 2018 and later became part of FNB in 2022. Fannie Mae identified two problematic loans that Sun West repurchased for $339,727.25 and $513,661.82. Sun West claims losses exceeding $872,733.11 or more than $950,000 with interest, attorneys' fees and other costs. Prior litigation over the settlement occurred in September 2022.
Read at www.housingwire.com
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