Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 37

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 37
---
 loans may harm our business
and financial condition. 

  26 
In
connection
with
the
sale
and
securitization
of
mortgage
loans,
we
are
required
to
make
a
variety
of
customary 
representations
and
warranties regarding
Popular
and
the
loans
being
sold
or
securitized.
Our
obligations with
respect to
these 
representations and warranties are generally outstanding for the
life of the loan, and they
relate to, among other things, compliance 
with
laws
and
regulations,
underwriting
standards,
the
accuracy
of
information
in
the
loan
documents
and
loan
file
and
the 
characteristics
and
enforceability of
the
loan.
A
loan
that
does
not
comply
with
the
secondary
market’s
requirements
may
take 
longer to
sell, impact
our ability
to securitize
the loans
or pledge
the loans
as collateral
for borrowings,
or be
unsalable or
salable 
only
at
a
significant
discount.
Moreover,
if
any
such
loan
is
sold
before
we
detect
non-compliance,
we
may
be
obligated
to 
repurchase the loan and bear any associated loss directly,
or we may be obligated to indemnify the purchaser against any loss.
We 
seek to
minimize repurchases and
losses from defective
loans by correcting
flaws, if possible,
and selling or
re-selling such loans. 
However,
if
we
were
to
suffer
significant
losses
from
defective
and
repurchased
loans,
our
results
of
operations
and
financial 
condition could be materially impacted. 
If we are
unable to maintain
or grow our
deposits, we may
be subject to
paying higher funding costs
and our net
interest 
income may decrease. 

We rely primarily on bank deposits as a low cost and
stable source of funding for our lending and
investment activities and 
the operation of
our business. Therefore, our
funding costs are largely
dependent on our ability
to maintain and
grow our deposits. 
As
our