At A Glance

In a securitization, we helped a US residential real estate private investment fund avoid burdensome costs and administrative tasks by using a practice first used in the auto industry.

  • THE ASSETS

    The assets were mortgage loans secured by residential real estate, as well as REO properties (“real-estate owned”—foreclosed—properties).

  • THE DIFFICULTY

    In the United States, assignments of mortgage and transfers of deeds are handled by individual county recorder offices across the country.

    Which takes considerable time and cost.


  • AN EXISTING SOLUTION

    Auto lease securitizations also involve the tedious, regulated transfer of ownership documents—car titles.

    An effective workaround has been to set up a titling trust, a special master trust that becomes and remains the cars’ owner of record.


  • A NOVEL APPLICATION

    We set up a titling trust to transfer beneficial ownership of the mortgage loans and REO properties to specific securitization transactions without having to transfer legal title.

  • IF THERE, WHY NOT HERE?

    Using titling trusts, structured finance transactions involving real estate are now enjoying the same efficiency found in auto lease transactions. (Read more about this application of a solution across industries in an article by our partner Jon Van Gorp.)
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