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Hey Dave, or anyone with industry knowledge:

You probably saw the news release that Freddie is stepping up mortgage repurchase demands. According to U.S. Bancorp, Freddie is expanding buybacks requests to mortgages originated in 2004 and 2005. My question, if a 2004 loan performed until the economic collapse in 2008, and then became non-performing leading to foreclosure, could U.S. Bankcorp really be required to buyback, because the original loan did not meet Freddie's 2004 lending standards?

Basically, how can Freddie consider a loan that was consistently paid on time for four years, then as a result of nationwide economic difficulties begin to not perform, be the result of U.S. Bankcorps underwriting ability?
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