MORTGAGE RIGHTS
The World of Securitized Mortgages How Securitization Was Supposed To Work
I like to explain securitization by explaining what Wall Street was trying to do. Loans were securitized so that Wall Street could sell investments. Wall Street made certain promises to the investors, including (1) the trust would own the loans; (2) the investment would qualify as a REMIC for tax purposes; and (3) if the Sponsor went into bankruptcy, the loans would not be considered to be the property of the Sponsor. For these promises to be true, the loans had to be conveyed to the trust exactly as required by the PSA (Pooling and Servicing Agreement, the legal document governing the creation of the trust and the rules for servicing the loans after the trust was created). The requirement that the loans be conveyed to the trust according to the procedure specified in the PSA assured that the loans -- not just the right to enforce the note -- belonged to the trust. The rules that the loans be conveyed to the trust by certain deadlines assured that the trust would qualify as a REMIC. The requirement that the loans go from the sponsor to the depositor and then to the trust assured that the loans would not be considered property of the sponsor should the sponsor go into bankruptcy.
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 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
I like to explain securitization by explaining what Wall Street was trying to do. Loans were securitized so that Wall Street could sell investments. Wall Street made certain promises to the investors, including (1) the trust would own the loans; (2) the investment would qualify as a REMIC for tax purposes; and (3) if the Sponsor went into bankruptcy, the loans would not be considered to be the property of the Sponsor. For these promises to be true, the loans had to be conveyed to the trust exactly as required by the PSA (Pooling and Servicing Agreement, the legal document governing the creation of the trust and the rules for servicing the loans after the trust was created). The requirement that the loans be conveyed to the trust according to the procedure specified in the PSA assured that the loans -- not just the right to enforce the note -- belonged to the trust. The rules that the loans be conveyed to the trust by certain deadlines assured that the trust would qualify as a REMIC. The requirement that the loans go from the sponsor to the depositor and then to the trust assured that the loans would not be considered property of the sponsor should the sponsor go into bankruptcy.  MORTGAGE RIGHTS
The World of Securitized Mortgages How Securitization Was Supposed To Work
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
I like to explain securitization by explaining what Wall Street was trying to do. Loans were securitized so that Wall Street could sell investments. Wall Street made certain promises to the investors, including (1) the trust would own the loans; (2) the investment would qualify as a REMIC for tax purposes; and (3) if the Sponsor went into bankruptcy, the loans would not be considered to be the property of the Sponsor. For these promises to be true, the loans had to be conveyed to the trust exactly as required by the PSA (Pooling and Servicing Agreement, the legal document governing the creation of the trust and the rules for servicing the loans after the trust was created). The requirement that the loans be conveyed to the trust according to the procedure specified in the PSA assured that the loans -- not just the right to enforce the note -- belonged to the trust. The rules that the loans be conveyed to the trust by certain deadlines assured that the trust would qualify as a REMIC. The requirement that the loans go from the sponsor to the depositor and then to the trust assured that the loans would not be considered property of the sponsor should the sponsor go into bankruptcy.  MORTGAGE RIGHTS
The World of Securitized Mortgages How Securitization Was Supposed To Work
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
I like to explain securitization by explaining what Wall Street was trying to do. Loans were securitized so that Wall Street could sell investments. Wall Street made certain promises to the investors, including (1) the trust would own the loans; (2) the investment would qualify as a REMIC for tax purposes; and (3) if the Sponsor went into bankruptcy, the loans would not be considered to be the property of the Sponsor. For these promises to be true, the loans had to be conveyed to the trust exactly as required by the PSA (Pooling and Servicing Agreement, the legal document governing the creation of the trust and the rules for servicing the loans after the trust was created). The requirement that the loans be conveyed to the trust according to the procedure specified in the PSA assured that the loans -- not just the right to enforce the note -- belonged to the trust. The rules that the loans be conveyed to the trust by certain deadlines assured that the trust would qualify as a REMIC. The requirement that the loans go from the sponsor to the depositor and then to the trust assured that the loans would not be considered property of the sponsor should the sponsor go into bankruptcy.  MORTGAGE RIGHTS
The World of Securitized Mortgages How Securitization Was Supposed To Work
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
 MORTGAGE RIGHTS