What is a Securitization Audit?
A Securitization Audit is an in-depth investigation of the securitization process of a mortgage.
Securitization. in its simplest concept, means to turn something into a security. A security is either a stock or a bond which can be traded on the stock market.
There are laws that detail the legal and correct method for turning a home loan into a security. If these laws are correctly followed, then all is well. If they are not, then we end up with fraudulent securities, fraudulent foreclosures, or wrongful foreclosures, or illegal foreclosures. A Securitization Audit is the resource for a homeowner to find out a) if his loan has been securitized, and b) if it was securitized, was it done correctly.
In most cases, today’s loans are securitized and when a homeowner requests a Securitization Audit to be done, it is consistently found that the securitization process was not correctly done.
One of the more common examples of a loan that has not been correctly securitized when we conduct the Securitization Audit is the fact that the note and the deed have been separated and have taken distinctly separate paths.
Typically, this means a couple of very important things: First – any foreclosure action being taken against the homeowner is a wrongful foreclosure, illegal foreclosure, or fraudulent foreclosure – whichever term you prefer. Second – There is something the homeowner can do to prevent losing his home to this wrongful foreclosure –IF he will just take action.
There are specific documents that must remain in place and together for a mortgage (which is often called “note”) to be “collateralized”.
Collateral is the item that a person puts forth as a guarantee of payment when he takes out a loan. If you want to borrow 5,000 dollars from your bank, they may ask you for collateral. This collateral will typically be something worth more than the $5,000.00. If for any reason you do not pay back the loan, then the bank will keep the collateral as payment for the money they loaned.
With home loans, the collateral is of course the home – which is represented by the deed. When a bank securitizes a loan, they must not separate the collateral in the process. Otherwise they end up with a loan that has no collateral – useless paper.
Interestingly, the banks got so sloppy, that this is exactly what they did. They took millions of loans, turned them into stocks and bonds
to be traded on the stock market, but did not include the deeds. Now they cannot foreclose because they no longer have the note, and the deed is no longer with the note, wherever it may be (usually in the hands of thousands of people – each owning a small piece of it).
This massive “oversight” by the banks is actually fraud. In fact it is fraud in many forms. These are the most easily seen:
Securities Fraud: The banks securitized “collateralized loans”, and then offered these to thousands of investors on the stock market. Interestingly, many banks are being investigated today by the Securities and Exchange Commission (SEC).
Mortgage Fraud: The banks represented these loans as sound and solid investments, yet in addition to the fact that these loans had no collateral, they were also subprime loans given to lenders who would never be able to repay them, and the banks knew it when they gave the loan.
Fraud upon the Courts. The banks are now conducting wrongful foreclosures, presenting to the courts that they have the legal right to foreclose on these borrowers. In fact, they don’t because as any good securitization audit will show, the bank doesn’t have the required documents to foreclose in their possession.
This would also be fraud upon the borrower who is now at risk of losing everything that is dear to him and that he has striven so hard to achieve.
Any homeowner who has obtained a loan in the last decade, and who has had foreclosure begin would be wise to immediately request a securitization audit – no matter what stage of foreclosure he is in!
FreeMortgageAudit.net is one of the most thorough audit companies in the industry today. They conduct forensic loan audits. securitization audits, offer loan modification software. and provide a number of negotiations services to help homeowners save their homes.
Homeowners who have lost their homes already to foreclosure, can, in many cases still be helped. You can use the Securitization Audit to show that the bank never had the right to foreclose.
FreeMortgageAudit.net can help homeowners obtain successful loan modifications as well.
If you are in foreclosure, the single most important thing that you can do is get a Mortgage Audit and use the results of that audit to negotiate with your bank. To find out more about the Securitization Audit contact a FreeMortgageAudit.net at (800) 704-4228.
You can also visit their website for more information on a Securitization Audit.