Sun West says it alerted FNB to the problem on October 8, 2024, and provided a copy of Fannie Mae’s notice. The deadline to repurchase passed on January 5, 2025. The bank did not act. Sun West had to buy the loan back from Fannie Mae on January 3, 2025, for $339,727, and now claims FNB owes it $355,300 as of October 15, 2025, a figure that continues to grow with interest and fees.
The Besner Loan presented a different problem. Sun West says the recorded deeds of trust simply don’t exist in the loan file—documents that should have been transferred when First Mariner handed over servicing but apparently never were. Without recorded mortgages, the loan became a serious liability.
Fannie Mae flagged the missing documents as creating “a very large loss risk” and declared the loan ineligible for delivery. Sun West says it notified FNB on July 10, 2025, and sought help locating the paperwork. When nothing materialized and Fannie Mae refused an extension, Sun West repurchased the Besner Loan on September 12, 2025, for $513,661. It now seeks $517,432 from FNB as of October 15, 2025, plus mounting fees.
In its filing, Sun West accuses the bank of stalling deliberately. FNB is “fully aware of its obligations,” the suit alleges, “but is delaying the process in bad faith.”
The case underscores a tension in the mortgage industry as banks consolidate and acquire rivals. When a successor bank inherits a predecessor’s loan portfolio, who is responsible when old origination defects come to light? And what happens when settlements meant to answer that question are allegedly ignored?