The Mortgage Bankers Association (MBA) has released a draft purchase and sale agreement (Agreement) for whole loans it hopes will become the standard form for industry participants to use voluntarily for whole loan purchases and sales made with an eye toward potential securitization. MBA has issued the Agreement for a 30-day public comment period in order to solicit feedback from as diverse an audience possible, and to ensure all interested parties have an opportunity to provide input.
The draft Agreement can be found here.
The Agreement is part of an MBA initiative to help increase liquidity and efficiency in the non-conforming residential mortgage market. The Agreement provides standard formatting and text for standard practices, reducing the time, effort and cost of legal and due diligence reviews. The Agreement also includes standard formats for transaction-specific terms.
Comments on the Agreement can be submitted one of three ways:
► Online: Comments may be submitted online by inputting your comments directly at: http://www.mortgagebankers.org/MBAModelLoanPurchaseAgreementProposal.htm.
► E-mail: Comments and electronic attachments (preferably in MS Word or PDF format) to [email protected]
► Mail: Submit written comments by mail to:
Attention Michael Carrier
Associate Vice President of Secondary and Capital Markets
Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005
Comments are due no later than Tuesday, Sept. 1, 2009.
For more information, visit www.mortgagebankers.org.