Most home loans aren't held "on the books" by your local neighborhood bank any more. They're packaged together and sold off to end investors as Mortgage Backed Securities (MBS). A mortgage-backed security (MBS) is an asset-backed security whose cash flows are backed by the principal and interest payments of a pool of mortgage loans. Payments are typically made monthly over the lifetime of the underlying loans. However, before your client's home loan can be properly included into such a pool, many things have to occur in a precise order and within a fixed window of time. This intricate process ultimately requires  transferring the loans into a trust and involves Special Purpose Entities (SPE) and complex Pooling and Servicing Agreements that dictate when and how the asset may be transferred into the trust and much  more.

Why conduct a Securitization Review?

Unfortunately, during the course of pooling so many residential loans, thousands of transactions take place and errors frequently occur. Since the securitization process involves selling securities to the public, the documents must be filed with the Securities and Exchange Commission (SEC), often as a part of other documents. Many of these documents are hundreds of pages in length and locating the document itself, and then the specific section of the agreement in question is often time consuming and cost prohibitive at a Partner's billable rate.  It is for this reason that attorneys hire our forensic team to assist them with document location, identification and research, all of which are necessary to properly analyze this complex chain of events. It is precisely this leg work that is best handled by well trained staff familiar with the research techniques associated searching SEC filings.
With the proper documents in hand, our client attorneys can determine whether or not the correct transfers took place. In the event the transfers to the trust are proven invalid, attorneys can, and often do, sue to set aside their client’s mortgage, and, if successful, the home loan is effectively converted to an unsecured loan.

Forensic Accounting

AmStar's forensic accounting team is composed of accountants, financial analysts and former compliance officers that work under the supervision of the client law firm to assist in the location, identification and researching of the SEC filings required to properly securitize your client's home loan. As a part of this process, your law firm will work with our team to review the securitization process for compliance with the terms of the Pooling and Servicing Agreement.  The resulting work product is a detailed report that that will allow you to close the loan modification or settle the foreclosure action with confidence that your client's rights have been fully protected.

AmStar's Forensic team can also help your firm with investigative work on related matters, such as:

• Analysis of Mortgage Back Securities
• Investor Fraud and Misrepresentation
• Expert Witness Services

If you would like to learn more about this valuable service, contact us toll-free at 877-550-5878, drop us an
e-mail at sales@amstarlit.com, or order now.