Mortgage securitization audits are performed when an auditor, who is usually a third party in a foreclosure goes through the filings in the public records to identify any deviation that may occur from the required securitization procedures outlined in the Pooling and Servicing Agreement(PSA).
Mortgage securitization audits include records of mortgage transfers and all the parties that are involved in the securitization procedure. Securitization is the process of pooling various types of contractual debts or other assets and selling their related cash flows to third-party investors.
Finding if your mortgage has been securitized is important as it helps people facing foreclosure or thinking about getting a title on your home. If you are in foreclosure, the audits can be essential in court processes.
Mortgage sensitization seeks to find if the party that is seeking foreclosure has demonstrated true ownership. The audit also investigates if the claims of financial interest have been represented truthfully and if all the materials and documents have been disclosed.
The process of mortgage securitization audits involves various steps of investigation to find out the legalities of mortgages. The findings are summarized in reports which can be presented in court.
One form of mortgage securitization is a mortgage-backed security. After the large portfolios are combined into smaller pieces; the small pieces are based on the inherent risk of default by each mortgage. The smaller mortgage pieces are then sold to investors as bonds.
One benefit of mortgage securitization is the fact that retail investors purchase shares in the investments that are normally unavailable to them. Without securitization of the mortgages, the smaller investors would not be able to afford to buy into large mortgages.
One of the drawbacks of securitization is that assets will be able to maintain their value if a debtor ceases to make payments.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.