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So, if we could have one law that prevented the SPE from going after servicer for negotiating in good faith under this sub-prime scenario – bam! The borrower now has some one to negotiate with. But there needs to be some agreement on “good faith.”

It would have to be a tricky law, b/c one could argue the mortgage originator may have engaged in bad faith behavior when they originated the loan in the first place, which the SPE might want to hold the originator accountable for. This pre-existing bad blood could make the SPEs reluctant to negotiate with mortgage originators of known questionable underwriting practises.
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