American Securitization Forum Says Transfers of Residential Mortgage Loans to Securitization Trusts Are Valid
On Friday, the American Securitization Forum issued a press release in response to rumors that transfers of residential mortgage loans to securitization trusts were not valid.
Specifically, in recent days, concerns had been raised as to whether the standard industry methods of transferring ownership of residential mortgage loans to securitization trusts were sufficient and appropriate. After consulting with various ASF member law firms, it was determined that these concerns are without merit, "as the conventional process for loan transfers embodied in standard legal documentation for mortgage securitizations is adequate and appropriate to transfer ownership of mortgage loans to the securitization trusts in accordance with applicable law. This process is sufficient to establish ownership by the securitization trusts."
Look for more information from the ASF on this topic over the coming weeks!
