109 Lender's Repurchase Obligation

For reasons including but not limited to the following, Lender must repurchase any Loan sold to GHFA by the 15th Business Day following our demand in accordance with the Loan Seller Agreement:

  1. Any of the warranties contained in the forms and certifications required by the Seller Guide are deemed untrue or misleading in any material respect by DCA;
  2. the Loan is found to be in violation of any applicable Program, Mortgage Insurer, or GSE requirements; 
  3. Lender fails to deliver any required documents and/or certifications;
  4. Lender takes action which impairs GHFA’s security and/or causes the Loan to no longer meet the requirements of the Seller Guide, either before or after the sale of the Loan to GHFA and execution of the Lender Certification (Form SF-60); and/or
  5. Lender fails to take action that protects GHFA’s security and/or causes the Loan to no longer meet the requirements of the Seller Guide, either before or after the sale of the Loan to GHFA.
  6. the Loan has an early payment default of any payments within the first six (6) months of the closing date including repayment of the Servicing Release Premium

In the event the Lender is required to repurchase a Loan, the amount due to DCA on GHFA’s behalf will be governed by the terms of the most recently executed Loan Seller Agreement.

GHFA/DCA will not require a repurchase for loans with defects discovered more than 36 months after the purchase date of the loan, except for cases of fraud, misrepresentation, or material violations of loan eligibility requirements. After the 36-month period, repurchase is not required for minor defects unless the defect significantly impacts the loan’s performance or eligibility.