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This process is referred to as securitization. In the context of the Hillsborough Florida Pooling and Servicing Agreement contemplating the sale of mortgage loans to Trustee for inclusion in the Trust Fund by the company, securitization allows financial institutions to convert mortgage loans into marketable securities. Securitization provides an efficient way for lenders to manage risk while increasing liquidity in the mortgage market.
The pooling and servicing agreement is crucial as it establishes the framework for how mortgage loans will be managed and funded. With regard to the Hillsborough Florida Pooling and Servicing Agreement contemplating the sale of mortgage loans to Trustee for inclusion in the Trust Fund by the company, this agreement protects the interests of all parties involved, including borrowers and investors. By clearly delineating responsibilities and processes, it fosters trust and stability in the mortgage-backed securities market.
A servicing agreement is a contract between a servicer and a special purpose vehicle (SPV) or an assignee under which the servicer is responsible for administering a lease and acting as a conduit for all payments over the lease term in return for a periodic servicing fee .
The Public Securities Association Standard Prepayment Model (PSA) is the assumed monthly rate of prepayment that is annualized to the outstanding principal balance of a mortgage loan.
Securitization is the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities. The interest and principal payments from the assets are passed through to the purchasers of the securities.
Mortgage pools consist of mortgages with similar characteristics that are grouped together and sold. Lenders create mortgage pools to sell on the secondary mortgage market so they can free up funds for more loans.
A mortgage pool is a group of mortgages held in trust as collateral for the issuance of a mortgage-backed security. Some mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae are known as "pools" themselves. These are the simplest form of mortgage-backed security.
The Pooling and Servicing Agreement is the legal document that contains the responsibilities and rights of the servicer, the trustee, and others over a pool of mortgage loans.
Pooled Loan means any Existing Loan that encumbers a pool of multiple Real Properties.
A loan servicing agreement is a written contract between a lender and a loan servicer that gives the loan servicer the authority to manage most aspects of a particular loan.