MORTGAGE RIGHTS
The World of Securitized Mortgages Meet the New Players
This exhibit illustrates the changes in the relationship between homeowners and the companies that collect their monthly payments. Before securitization, banks kept their loans in house. The loan administration department was responsible for maintaining the records of the loans; the file room kept the original loan documents; and payments were deposited in an account controlled by the bank. If a mistake was made or if the borrower needed a forbearance or loan modification, the borrower could go to the bank and talk to someone. The Trust Securitized loans are owned by a legal entity, a trust. The trust acquires and holds the Mortgage loans. The trust does not deal with homeowner complaints and inquiries, and it does not grant loan modifications. You cannot go to the trust's office to talk to someone about your loan. As Gertrude Stein famously said about Oakland, "There is no there, there" is also true about of securitization trusts so far as homeowners are concerned. The Trustee The Trustee provides services to the investors. When the loans are transferred to the trust, the trustee is supposed to examine every file to make certain that all the required documents, including the original note, are in every file. The trustee is supposed to conduct this review twice, and to issue certifications each time. The Mortgage Loan Servicer When your loan has been securitized loan servicers, also called mortgage companies, handle your account. People sometimes confuse loan servicers with lenders. A mortgage lender is the financial institution that loaned you the money to buy your house. A loan servicer handles the day-to-day tasks of managing your loan, such as keeping payment records, producing account statements, imposing late charges and other fees, keeps records of principal and interest paid, responds to borrower inquiries, and begins the foreclosure process when you default. You may not have the same loan servicer for the life of your loan. The rights to service mortgages are bought and sold by servicing companies. The Documents Custodian The document custodian maintains control of loan documents for the life of the pool. That is, its duties are not complete until the last loan in the pool is either paid off or is foreclosed upon. MERS MERS stands for the Mortgage Electronic Registration System. MERS was created so that the companies securitizing loans would not have to pay fees to local Registers of Deeds. When a loan is made, the lender has the borrower give the mortgage to MERS, which becomes an agent of the lender. MERS also maintains a record of who owns the "beneficial interest" in the mortgage. MERS is very fuzzy about what "beneficial interest" means legally. If the loan is paid off, or if the loan goes into foreclosure, MERS executes an assignment of mortgage to the owner of the beneficial interest. The public cannot see the beneficial interest records.
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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.
This exhibit illustrates the changes in the relationship between homeowners and the companies that collect their monthly payments. Before securitization, banks kept their loans in house. The loan administration department was responsible for maintaining the records of the loans; the file room kept the original loan documents; and payments were deposited in an account controlled by the bank. If a mistake was made or if the borrower needed a forbearance or loan modification, the borrower could go to the bank and talk to someone. The Trust Securitized loans are owned by a legal entity, a trust. The trust acquires and holds the Mortgage loans. The trust does not deal with homeowner complaints and inquiries, and it does not grant loan modifications. You cannot go to the trust's office to talk to someone about your loan. As Gertrude Stein famously said about Oakland, "There is no there, there" is also true about of securitization trusts so far as homeowners are concerned. The Trustee The Trustee provides services to the investors. When the loans are transferred to the trust, the trustee is supposed to examine every file to make certain that all the required documents, including the original note, are in every file. The trustee is supposed to conduct this review twice, and to issue certifications each time. The Mortgage Loan Servicer When your loan has been securitized loan servicers, also called mortgage companies, handle your account. People sometimes confuse loan servicers with lenders. A mortgage lender is the financial institution that loaned you the money to buy your house. A loan servicer handles the day-to-day tasks of managing your loan, such as keeping payment records, producing account statements, imposing late charges and other fees, keeps records of principal and interest paid, responds to borrower inquiries, and begins the foreclosure process when you default. You may not have the same loan servicer for the life of your loan. The rights to service mortgages are bought and sold by servicing companies. The Documents Custodian The document custodian maintains control of loan documents for the life of the pool. That is, its duties are not complete until the last loan in the pool is either paid off or is foreclosed upon. MERS MERS stands for the Mortgage Electronic Registration System. MERS was created so that the companies securitizing loans would not have to pay fees to local Registers of Deeds. When a loan is made, the lender has the borrower give the mortgage to MERS, which becomes an agent of the lender. MERS also maintains a record of who owns the "beneficial interest" in the mortgage. MERS is very fuzzy about what "beneficial interest" means legally. If the loan is paid off, or if the loan goes into foreclosure, MERS executes an assignment of mortgage to the owner of the beneficial interest. The public cannot see the beneficial interest records.  MORTGAGE RIGHTS
The World of Securitized Mortgages Meet the New Players
 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.
This exhibit illustrates the changes in the relationship between homeowners and the companies that collect their monthly payments. Before securitization, banks kept their loans in house. The loan administration department was responsible for maintaining the records of the loans; the file room kept the original loan documents; and payments were deposited in an account controlled by the bank. If a mistake was made or if the borrower needed a forbearance or loan modification, the borrower could go to the bank and talk to someone. The Trust Securitized loans are owned by a legal entity, a trust. The trust acquires and holds the Mortgage loans. The trust does not deal with homeowner complaints and inquiries, and it does not grant loan modifications. You cannot go to the trust's office to talk to someone about your loan. As Gertrude Stein famously said about Oakland, "There is no there, there" is also true about of securitization trusts so far as homeowners are concerned. The Trustee The Trustee provides services to the investors. When the loans are transferred to the trust, the trustee is supposed to examine every file to make certain that all the required documents, including the original note, are in every file. The trustee is supposed to conduct this review twice, and to issue certifications each time. The Mortgage Loan Servicer When your loan has been securitized loan servicers, also called mortgage companies, handle your account. People sometimes confuse loan servicers with lenders. A mortgage lender is the financial institution that loaned you the money to buy your house. A loan servicer handles the day-to-day tasks of managing your loan, such as keeping payment records, producing account statements, imposing late charges and other fees, keeps records of principal and interest paid, responds to borrower inquiries, and begins the foreclosure process when you default. You may not have the same loan servicer for the life of your loan. The rights to service mortgages are bought and sold by servicing companies. The Documents Custodian The document custodian maintains control of loan documents for the life of the pool. That is, its duties are not complete until the last loan in the pool is either paid off or is foreclosed upon. MERS MERS stands for the Mortgage Electronic Registration System. MERS was created so that the companies securitizing loans would not have to pay fees to local Registers of Deeds. When a loan is made, the lender has the borrower give the mortgage to MERS, which becomes an agent of the lender. MERS also maintains a record of who owns the "beneficial interest" in the mortgage. MERS is very fuzzy about what "beneficial interest" means legally. If the loan is paid off, or if the loan goes into foreclosure, MERS executes an assignment of mortgage to the owner of the beneficial interest. The public cannot see the beneficial interest records.  MORTGAGE RIGHTS
The World of Securitized Mortgages Meet the New Players
 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.
This exhibit illustrates the changes in the relationship between homeowners and the companies that collect their monthly payments. Before securitization, banks kept their loans in house. The loan administration department was responsible for maintaining the records of the loans; the file room kept the original loan documents; and payments were deposited in an account controlled by the bank. If a mistake was made or if the borrower needed a forbearance or loan modification, the borrower could go to the bank and talk to someone. The Trust Securitized loans are owned by a legal entity, a trust. The trust acquires and holds the Mortgage loans. The trust does not deal with homeowner complaints and inquiries, and it does not grant loan modifications. You cannot go to the trust's office to talk to someone about your loan. As Gertrude Stein famously said about Oakland, "There is no there, there" is also true about of securitization trusts so far as homeowners are concerned. The Trustee The Trustee provides services to the investors. When the loans are transferred to the trust, the trustee is supposed to examine every file to make certain that all the required documents, including the original note, are in every file. The trustee is supposed to conduct this review twice, and to issue certifications each time. The Mortgage Loan Servicer When your loan has been securitized loan servicers, also called mortgage companies, handle your account. People sometimes confuse loan servicers with lenders. A mortgage lender is the financial institution that loaned you the money to buy your house. A loan servicer handles the day-to-day tasks of managing your loan, such as keeping payment records, producing account statements, imposing late charges and other fees, keeps records of principal and interest paid, responds to borrower inquiries, and begins the foreclosure process when you default. You may not have the same loan servicer for the life of your loan. The rights to service mortgages are bought and sold by servicing companies. The Documents Custodian The document custodian maintains control of loan documents for the life of the pool. That is, its duties are not complete until the last loan in the pool is either paid off or is foreclosed upon. MERS MERS stands for the Mortgage Electronic Registration System. MERS was created so that the companies securitizing loans would not have to pay fees to local Registers of Deeds. When a loan is made, the lender has the borrower give the mortgage to MERS, which becomes an agent of the lender. MERS also maintains a record of who owns the "beneficial interest" in the mortgage. MERS is very fuzzy about what "beneficial interest" means legally. If the loan is paid off, or if the loan goes into foreclosure, MERS executes an assignment of mortgage to the owner of the beneficial interest. The public cannot see the beneficial interest records.  MORTGAGE RIGHTS
The World of Securitized Mortgages Meet the New Players
 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.