Securitization Reverse Engineering and Failure Analysis for Lawyers
By Daniel Edstrom
DTC Systems
http://www.dtc-systems.net
http://livinglies.wordpress.com
- This service provides the data and analysis for attorneys to understand the obligation, the right to enforce the obligation and the default as it relates to securitized transactions. Lawyers can use this data to understand why it may be seemingly impossible for a homeowner to discharge the obligation through payment.
- We read and do a standard analysis of the Prospectus Supplement and Pooling and Servicing Agreement (or applicable governing documents)
- Includes an analysis of the 15-15d SEC filing, which is the Notice of Suspension of Duty to File Reports (if applicable) (premium analysis only)
- We provide a comprehensive loan level analysis (depending on availability) (standard analysis includes only the loan level files)
- this includes many additional items plus approx. 10 diagrams that can be printed poster sized showing various aspects of the complex financially engineered transaction. (standard analysis includes only a transaction structure diagram)
Note that these are complex financially engineered transactions, not just “home loans.” The entity that we are looking for is typically, but not always a trust. It is sometimes an investor or other type of entity (including any type of business entity), special purpose entity (SPE) or special purpose vehicle (SPV). In some cases the result will be a public trust, private trust, Fannie Mae, Freddie Mac or Ginnie Mae loan, investor or other type of entity. The actual documentation varies across the type of securitization (public, private or GSE), as well as based on which entities are involved and what types of documentation is available.
Turn around time is usually 2 to 4 weeks.
