Loan repurchases have been particularly expensive this year for lenders that resolve them by reselling the mortgages in the scratch-and-dent market. So some companies have turned to an alternative.

Lenders like Beeline and Plaza Home Loans have bought repurchase insurance for certain types of loan defects that may prompt government-sponsored enterprises Fannie Mae and Freddie Mac to request buybacks.

What mortgage companies and some providers are finding is high costs associated with fraud and defect risk may make the coverage compelling but thin margins for originators argues for buying it selectively in some cases.

To help companies navigate these considerations, we asked several experts about some of the various options available recently and their limits.