Purchasing Loans and Loan Participations
Issue/Inquiry
The Bank does not engage in one-to-four family residential lending. It is considering purchasing loans or loan participations in such loans from another financial institution, which will service the loans. As a prerequisite to the purchase, the Bank would underwrite the purchase of the loan or loan participation as though it were originating the loan. If the Bank does not offer or engage in residential lending, does that preclude it from purchasing loans or loan participations in such loans originated by another bank, which will service the loans?
Continue Reading…