In February 2007, HSBC Mortgage Services, Inc. commenced litigation against AFM in the Northern District of Illinois based on assigned loans that resulted in early payment defaults, a repurchase event pursuant to the governing loan purchase agreement. Court documents indicate Countrywide Financial Corporation was also demanding repurchase of some loans it purchased from AFM. In March 2007, "The Wall Street Journal" reported many lenders, including HSBC Mortgage Services and Countrywide, were demanding AFM repurchase loans pursuant to repurchase provisions contained in loan purchase agreements.