[20071022]RS22741_证券化是次贷借款人解决问题的障碍吗？.pdf

Order Code RS22741October 22, 2007Is Securitization an Obstacle to SubprimeBorrower Workouts?Edward V. MurphyAnalyst in Financial InstitutionsGovernment and Finance DivisionSummarySecuritization is the process by which a group of similar assets, such as mortgages,is transformed into marketable securities. Securitization could present an obstacle toborrowers and lenders seeking to work out more manageable terms to avoid foreclosurebecause the special purpose trusts that hold the loans are required to remain passive inorder to comply with the Real Estate Mortgage Investment Conduit (REMIC) tax rules.A private servicer, sometimes the original lender, typically administers the loans onbehalf of the trust according to a prearranged set of rules. The passivity requirementcould be interpreted as barring the trusts from granting servicers additional discretionto modify loans to cope with unanticipated market conditions. These issues are furthercomplicated by accounting rules that lenders comply with when transferring the loansto the trusts, particularly FAS 140, which governs the definition of a true sale. A lenderthat is contracted as the loan servicer could be considered actively managin