Banks look to recoup subprime loans

Some banks are trying to force smaller subprime loan originators to buy back some of the loans the banks purchased from the mortgage companies a year or two ago. Banks like HSBC want to recoup their investments by invoking repurchase agreements tied to the loans. Repurchase agreements vary, but they often require mortgage originators to buy back troubled loans sold to banks if the originators miss several months of payments. Such agreements cover several billion dollars in loans nationwide. more [WSJ]