What Is a Mortgage Securitization Audit and How Does It Work?
Over the past few decades the mortgage industry has gone through a lot of changes; one such change being the securitization of mortgages, which is a very complicated part of modern day lending. Many homeowners do not realize that their mortgage can be pooled with hundreds or thousands of other mortgages and sold off to investors. Consequently, lending professionals often perform mortgage securitization audits to find out what happened to the mortgage after the loan was issued, and to determine whether the legal documents associated with the loans were processed correctly. Mortgage Securitization is the process of aggregating or pooling a bunch of mortgages (known as "mortgage backed securities") together, and packaging those together into financial instruments such as Real Estate Mortgage Investment Conduit (REMIC) Trusts that can be sold to investors. Investors buy shares of REMIC Trusts and earn returns based on the mortgage payments made by the borrowers. In addition to h...