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Reporting Seller Mortgage Loan Repurchase & Indemnity Statistics

Once the necessary servicing data is available, the investor runs a repurchase and indemnity report that generates repurchase and indemnity statistics by seller. Repurchase and indemnity reports vary depending on the reporting needs of the investor. The repurchase and indemnity report detailed in this article is intended to fulfill an investor requirement to report a seller's total active servicing repurchases and indemnities by repurchase or indemnity type. Examples of Repurchase or Indemnity type are Early Payment Default (EPD) or Quality Control (QC).

Creating the Report...
Seller Active Servicing by Repurchase or Indemnity Type
The seller active servicing by repurchase or indemnity type is the seller's total active servicing dollar amount by repurchase or indemnity type divided by the seller's total active servicing. The following steps generate a report of the seller's active servicing repurchase or indemnity type and reports each repurchase or indemnity type as a percentage of active servicing.

Step #1
The seller's total active servicing is calculated.

The seller's total active servicing is equal to the sum of the principal amount of all loans in the investor's servicing portfolio, for the seller, where the loan's status is Active, Repurchase, Bankruptcy, Foreclosure, Prepayment or Early Payoff. Typically, the only loans excluded by an investor when calculating the active servicing for a seller are those that have been sold servicing released by the investor and paid in full loans that are not considered early payoffs.

Step #2
The seller's active servicing by repurchase or indemnity type is calculated.

The seller's total active servicing by repurchase or indemnity type is equal to the sum of the principal amount of all loans in the investor's servicing portfolio, for the seller, by the investor's repurchase or indemnity type where the loan's status is repurchase or indemnity.

Step #3
The seller's active servicing repurchase or indemnity type percentages are calculated.

In this step the report retrieves the seller's total active servicing amount from Step #1 and the seller's active servicing by repurchase or indemnity type from Step #2. The report compares the total active servicing from Step #1 to the servicing amount by repurchase or indemnity type from Step #2 and reports the results as a percentage.

A Seller Repurchase & Indemnity report similar to the Sample Mortgage Loan Repurchase & Indemnity Report in the Sample Repurchase & Indemnity Report section of this article can be generated by the investor for distribution to the seller.

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