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purchase contract, whichever is greater, to petitioner’s
applicable regional office. If an originator failed to
acknowledge and submit a copy of a purchase contract, petitioner
may disqualify or suspend an originator as an eligible seller to
petitioner. After completing a documentation review,
underwriting, and property inspections, if any, petitioner’s
applicable regional office will contact an originator. The
mortgages acceptable to petitioner will be identified and
purchased.
An originator must deliver the mortgages to petitioner
within the 30-calendar-day commitment period. In most cases, the
penalty for nondelivery is disqualification or suspension of an
originator from eligibility to sell mortgages to petitioner.4
Under the immediate delivery purchase program, petitioner
established its required net yield when originators offered the
4 Petitioner’s Sellers’ & Servicers’ Guide, which is part of
the contract, states that petitioner “may disqualify or suspend a
* * * [an originator] for * * * [an originator’s] failure to
deliver any documents under a * * * mandatory delivery purchase
program, as required by section 0601”. Sec. 0601 of the Sellers’
and Servicers’ Guide states that “Delivery under the * * *
immediate delivery purchase programs is mandatory. * * *
Delivery is not mandatory under the home mortgage optional
delivery purchase programs.” The guide also provides that
petitioner may disqualify or suspend an originator for “failure
to observe or comply with any term or provision of the purchase
document”. In addition to disqualification and suspension,
petitioner “reserves the right to take whatever other action it
deems appropriate to protect its interests and enforce its
rights”.
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Last modified: May 25, 2011