Securitization is a financial term describing the process used to pool, trade and sell financial paper – in this case, mortgage loans. This process is complicated and contains a massive amount of information that can seem daunting at first. However, this method is used by almost every financial institution, so it’s important for you as a consumer to understand it so that you can protect yourself. (Note: While the general concept of securitization is pretty consistent, the actual details are highly dependent on the jurisdiction within which the process is conducted.)
The basics are:
- Mortgage loans (mortgage notes) are purchased from banks and other lenders and assigned to a trust. (Approximately 89% of mortgage loans taken out between 2000 and 2009 have been put into securitized trusts.)
- The trust assembles these loans into collections, or “pools”. (Most trust accounts are valued in the $Millions or even $Billions.)
- The trust securitizes the pools by issuing mortgage-backed securities that can be purchased by mutual funds, pension funds and retirement funds.
It is vitally important that you determine who is actually the interested party/parties on your mortgage. Therefore, you need a report to show all pertinent parties and their respective financial stakes in your property. In order to generate a complaint against all interested parties – especially the foreclosing trustee – a homeowner will need to have sufficient evidence that shows the specific roles of each party from origination of the loan to the current status of the loan (whether the homeowner is current or in foreclosure status).
We can research the full history of your loan, and (A) illustrate the separate paths of the Note and the Deed, (B) document any LOST original paperwork, (C) document the LACK of necessary recordings of assignments, and (D) expose the true owners of your loan and the total monetary value of the investment.