Portfolio risk management: Repurchase risk for non-QM mortgages

In the wake of the 2008 global financial crisis, many risk managers were caught flat-footed with representations and warranties exposure, also commonly known as repurchase exposure. After the crisis, the mortgage industry as a whole tightened up its processes and controls around the issuance of mortgage loans. Milliman’s Jonathan Glowacki and Edem Togbey offer perspective in this MBA Newslink article.

The article was also co-authored by Prieston & Associates’ Arthur Prieston and Zach Prieston.