As we've discussed several times in the recent past, the GSE's are actively investigating non performing loan files for breaches of representations and enforcing warranties.

What has traditionally been viewed by originators and lenders as a low frequency, moderate severity event ("a cost of doing business") - loan buyback requests are now multi-billion dollar contingent liabilities that command substantial financial and operational resources.

Consider that the GSEs alone have roughly $400 billion of non performing loans in aggregate and that equates to roughly 3.5 million files that are in the queue to be reviewed. If you assume that 50% of those files will be contested by the defending originator - theoretically, you are looking at well over 5 million files that will need to be reviewed in 2010 even if not another loan goes delinquent, and even if they all the currently delinquent loans cure. 

With that in mind, please contact me directly if you are personally interested or have a colleague that may be interested in working with the GSEs in auditing these loan files. We are recruiting for 50 positions to be filled between January and February. Work to be performed in Northern Virginia facilities.