Securitized Mortgage

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Securitized Mortgage

A mortgage that is packaged into a mortgage-backed security (MBS). One mortgage may be securitized over several MBSs, and each MBS contains many securitized mortgages. A securitized mortgage gives the holder of the security, rather than the bank originating the loan, the right a claim on the principal and interest payments on that mortgage. Mortgages are securitized to remove them from a bank's balance sheet (which reduces risk) and to improve its cash flow.
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When banks sold securitized mortgages to a large financial institution, however, they lost interest in the ability of customers to repay.
For instance, for securitized mortgages, the industry relies on the MERS (Mortgage Electronic Registration System) to issue Mortgage Identification Numbers (MINs) for mortgage loans.
of securitized mortgages on more than a dozen properties, according to Real Estate Alert; among the Manhattan properties they financed were the Starrett-Lehigh Building, 450 West 33rd Street, 500512 Seventh Avenue, 1185 Avenue of the Americas, the Toy Buildings complex, 530 Fifth Avenue, 123 William Street, 65 Broadway and 401 Fifth Avenue, but the Chitrits have since sold their interests in many of those assets.
With securitized mortgages, careful presuit attention to, and review of, the loan documents and chain of title of the note, and, when necessary, the proper execution and/or recording of any missing assignments or indorsements, will provide lender's counsel with sufficient supporting evidence to establish standing in a verified complaint, and thus avoid many standing defenses.
Another proposal, by professor Howell Jackson of Harvard Law School, would use government's power of eminent domain to take securitized mortgages, compensate the holder at the securities' (much reduced) fair market value, and use the savings to turn the paper back into whole mortgages with steep reductions in interest and principal.
In 1997 Bear Stearns issued its first AAA-rated, Freddie Mac-guaranteed CRA securitized mortgages on rising home values.
Piskorski, the Columbia professor, predicted there wouldn't be much of a market for securitized mortgages "at least for a year or two." And then, he predicted, the banks will have to keep some of the riskiest parts of the loans on their balance sheets.
Securitized mortgages were not backed by the capital of the loans' originators against losses, but covered bonds are.
The development of asset markets has also been facilitated by the computer revolution for example in the development of securitized mortgages and online trading.
The securitized mortgages had an average LTV in excess of 60% and Deutsche Bank can not issue Pfandbrief.
This situation will be buttressed by the continued development of active markets for securitized mortgages and consumer receivables.
Because of technical rules that determine how securitized mortgages are administered, borrowers can only negotiate the terms of a loan when the properly enters special servicing and, during the downturn, many owners allowed properties to fall into distress purposely to trigger this dialogue.