TORONTO, Feb 28 (Reuters) - Laurentian Bank of Canada LB.TO said on Wednesday it was continuing to review problematic mortgages sold to an unnamed third party last year and may need to repurchase more of the loans.
Laurentian said in December that it might have to buy back about C$304 million in mortgages sold to an unnamed third-party purchaser after an audit found "documentation issues and client misrepresentations".
In January, it said it had so far repurchased C$180 million of the problem mortgages and might have to buy back mortgages worth C$392 million in total.
Laurentian said on Wednesday that if its review of the 1,900 mortgages sold uncovers more loans that did not conform to the requirements of the sale it will either fix the mortgages or repurchase them. The bank said it expected the review to be completed by the end of the second quarter.
Laurentian also said that the Canada Mortgage and Corporation (CMHC), Canada's federal housing agency, had agreed the bank did not need to perform a full review of mortgages sold to CMHC's securitization programs or make further large-scale repurchases.
Laurentian said in January it had repurchased C$88 million of loans that were incorrectly sold to CMHC securitization programs.