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Foreclosure Forum |
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Re: default reservesIn Reply to: default reserves posted by Frank on May 23, 2003 at 5:54 AM : I've heard that all lenders are required to keep reserves for their nonperforming mortgage loans, sometimes as much as 6 to 8 times the outstanding principal balance. Is this true? Every lender, or just the major players like Fannie, Freddie, etc. Does this apply to mortgage loan servicers? =========== Frank, Lenders who work under the licensing auspices of federal and state governing entities have to adhere to a variety of reserve requirements, depending upon the particular lender category they belong to. However, theres no reserve required of any party whos just servicing a loan on behalf of its owner. Hope this helps.
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