Loan Purchase Agreement for the United States

Loan Purchase Agreement Template for United States

A Loan Purchase Agreement is a legally binding contract used in the United States that governs the sale and transfer of loans from one party to another. The agreement details the terms and conditions of the transaction, including purchase price, representations and warranties, conditions precedent, and post-closing obligations. It must comply with federal regulations such as TILA and state-specific lending laws, while addressing UCC requirements for the transfer of negotiable instruments and secured interests.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Generate a Bespoke Document

1. Select your governing law:

2. Enter your key requirements:

3. Create your document to edit, review or download

Download a Standard Template

Get our United States-compliant Loan Purchase Agreement

4.6 / 5

4.8 / 5

Alternatively: Run an advanced review of an existing
Loan Purchase Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

Upload your Doc

What is a Loan Purchase Agreement?

The Loan Purchase Agreement is essential when financial institutions or entities want to buy or sell loan portfolios in the United States. This contract type is commonly used in scenarios including portfolio optimization, regulatory compliance, or strategic business decisions. The agreement covers crucial elements such as loan identification, purchase price, representations about loan quality, servicing arrangements, and regulatory compliance requirements. It must adhere to both federal and state-specific regulations, making it a complex but vital document in loan trading transactions.

What sections should be included in a Loan Purchase Agreement?

1. Parties: Identifies the seller and purchaser of the loans, including their legal status, registration details, and principal place of business

2. Background: Explains the context of the loan sale and purchase transaction, including the nature of the loans being sold

3. Definitions: Defines key terms used throughout the agreement, including loan-specific terminology and regulatory references

4. Purchase and Sale: Core transaction terms including purchase price, payment mechanics, and transfer of title

5. Representations and Warranties: Statements of fact about the loans, seller's authority, compliance with laws, and loan characteristics

6. Conditions Precedent: Requirements that must be met before closing, including due diligence and regulatory approvals

7. Covenants: Ongoing obligations of the parties, including post-closing obligations and regulatory compliance

8. Indemnification: Terms governing how parties will compensate each other for losses related to breaches or claims

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Governing Law and Jurisdiction: Specifies the applicable law and courts that will handle disputes

What sections are optional to include in a Loan Purchase Agreement?

1. Servicing Transfer Provisions: Terms governing transfer of loan servicing rights and obligations when servicing is being transferred with the loans

2. Securitization Provisions: Terms related to future securitization of the loans, including cooperation obligations and information rights

3. Regulatory Compliance: Specific provisions addressing compliance with particular regulatory regimes when dealing with specialized loan types

4. Put-Back Rights: Terms allowing buyer to require seller to repurchase loans that fail to meet specified criteria

What schedules should be included in a Loan Purchase Agreement?

1. Schedule A - Loan Schedule: Detailed list of loans being sold including key characteristics, outstanding balances, and payment terms

2. Schedule B - Required Documentation: List of required loan documents to be delivered at closing for each loan

3. Schedule C - Form of Assignment: Template for individual loan assignments and transfer documents

4. Schedule D - Representations and Warranties: Detailed loan-level representations and warranties specific to the type of loans being sold

5. Schedule E - Due Diligence Findings: Summary of due diligence results, exceptions, and any remediation requirements

6. Schedule F - Purchase Price Calculation: Methodology for calculating the purchase price, including any adjustments or holdbacks

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Cost

Free to use

Relevant legal definitions

Clauses

Relevant Industries

Banking
Financial Services
Investment Management
Private Equity

Relevant Teams

Legal
Finance
Risk Management
Operations
Compliance

Relevant Roles

Chief Financial Officer
Portfolio Manager
Risk Manager
Legal Counsel
Loan Operations Manager

Industries

Truth in Lending Act (TILA) and Regulation Z: Federal law that requires lenders to provide standardized disclosures about loan terms and costs, ensuring transparency in consumer credit transactions

Fair Credit Reporting Act (FCRA): Regulates the collection, dissemination, and use of consumer credit information, ensuring accuracy and privacy of credit information

Equal Credit Opportunity Act (ECOA): Prohibits discrimination in lending based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance

Real Estate Settlement Procedures Act (RESPA): Governs real estate settlement processes and requires specific disclosures for mortgage loans, including servicing and escrow account practices

Fair Debt Collection Practices Act (FDCPA): Regulates debt collection practices and provides protections against abusive collection practices

Uniform Commercial Code (UCC): Standardized set of laws governing commercial transactions, particularly Articles 3 and 9 covering negotiable instruments and secured transactions

Dodd-Frank Wall Street Reform: Comprehensive financial reform legislation that established new regulatory requirements for financial institutions and created the CFPB

Bank Secrecy Act (BSA): Requires financial institutions to assist government agencies in detecting and preventing money laundering

Securities Act of 1933: Regulates the offer and sale of securities, requiring registration and detailed financial disclosure if loans are to be securitized

Securities Exchange Act of 1934: Governs secondary market trading of securities and establishes the SEC, relevant for securitized loan portfolios

Investment Company Act of 1940: Regulates investment companies and their activities, applicable if loans are pooled into investment vehicles

State Usury Laws: State-specific regulations that set maximum interest rates and govern loan charges that lenders can legally assess

State Licensing Requirements: State-specific regulations determining who can engage in lending activities and purchase loans within the state

State Consumer Protection Laws: State-specific laws providing additional consumer protections beyond federal requirements

Gramm-Leach-Bliley Act: Federal law requiring financial institutions to explain their information-sharing practices and protect sensitive data

OFAC Compliance Requirements: Regulations ensuring compliance with economic and trade sanctions against targeted foreign countries and regimes

Find the exact document you need

No matches found.

Dog Purchase Agreement

A legally binding contract for dog sales in the United States, outlining purchase terms and conditions while ensuring compliance with state and federal regulations.

How Cambridge United Uses Genie AI to Speed Up Player Signings and Slash Legal Costs

Generate a Bespoke Document

Download a Standard Template

What is a Loan Purchase Agreement?

What sections should be included in a Loan Purchase Agreement?

What sections are optional to include in a Loan Purchase Agreement?

What schedules should be included in a Loan Purchase Agreement?

Authors

Alex Denne

Jurisdiction

Publisher

Document Type

Sector

Cost

Find the exact document you need

Dog Purchase Agreement

Equine Sale Contract

Used Car Buy Sell Agreement

Purchase With Reservation Agreement

Car Probate Purchase Agreement

Marine Purchase Agreement

Purchase Agreement Auto

State Price Agreement

Coal Purchase Agreement

Agreement To Sell House

Commercial Real Estate Contract Form

Aircraft Purchase Agreement Fillable

Real Estate Buyers Agreement

Buyers Agreement Car

Software Source Code Purchase Agreement

Option Purchase Contract Car

Letter Of Offer To Purchase

Lease To Buy Land

Land Purchase Advance Agreement

Boat Slip Purchase Agreement

Gas Station Purchase Agreement

Mobile Home Park Purchase Agreement

Real Estate Sales Agreement Form

Semi Truck Purchase Agreement Form

Horse Lease Agreement With Option To Purchase

Truck Purchase Agreement

Intent To Buy Contract

Residential Purchase And Sale Agreement

Property NDA

Contract For Selling A House Privately

Wholesale Product Purchase Agreement

Personal Goodwill Purchase Agreement

Owner To Owner Home Sale Contract

Final Purchase Agreement

As Is Real Estate Contract Form

House Offer Contract

Domain Purchase Agreement

Contract Between Supplier And Buyer

Tractor Purchase Agreement

Residential Resale Real Estate Purchase Contract

Genie’s Security Promise

Your documents are private:

Your documents are protected:

Organizational security:

Templates

Contract Templates

Letter Templates

Policy Templates

Industries

Legal Services

Manufacturing

Construction

Solutions

Use Cases

Company Types

Comparisons

Business Categories

Teams

Information

Generate Legal Docs Free