Securitisation is the process by which a credit institution either a bank or an independent mortgage provider (IMP) sells assets on its loan book specifically, accounts receivable on its loan book to another financial intermediary, which then funds its holdings by issuing asset-backed securities to investors. By this process, the original illiquid asset is transformed into a tradeable, more liquid debt security. The purpose of this article is to examine the relevant aspects of commercial law and practice as they relate to three of the most critical features of mortgage origination within the securitisation process. Firstly, the article will analyse the following legal and regulatory aspects in the origination stage: (1) the concept of the as it relates to the mortgage securitisation process; (2) the legal consequences for various stakeholders of registering a mortgage as security on a loan; and (3) the impact of the Australian Prudential Regulation Authority (APRA) capital adequacy guidelines on relevant stakeholders in the mortgage origination stage within the RMBS programs.
Journal Of Law And Financial Management Collection
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