Washington Pooling and Servicing Agreement contemplating the sale of mortgage loans to Trustee for inclusion in the Trust Fund by the company

• Category: Real Estate - Mortgages and Deeds of Trust
• State: Multi-State
• Control #: US-EG-9219
• Format: Word; Rich Text

Description

Pooling and Servicing Agreement between MLCC Mortgage Investors, Inc., Merrill Lynch Credit Corporation and Bankers Trust Company of California, NA contemplating the sale of mortgage loans to Trustee for inclusion in the Trust Fund by the company dated Washington Pooling and Servicing Agreement (PSA) is a legal document that outlines the terms and conditions under which mortgage loans are sold to a Trustee for inclusion in a Trust Fund by a company. This agreement is an essential component of the securitization process in the mortgage industry. Here is a detailed description of what a Washington Pooling and Servicing Agreement entails: The PSA serves as a contract between the company originating the mortgage loans (referred to as the "Seller") and the Trustee responsible for managing the Trust Fund (referred to as the "Trustee"). The purpose of the agreement is to establish the rights, responsibilities, and obligations of both parties involved in the securitization transaction. Under the terms of the PSA, the Seller agrees to transfer a pool of mortgage loans to the Trustee, who holds them on behalf of the investors who have invested in the Trust Fund. The Trust Fund is a collective investment vehicle created specifically to hold and manage these mortgage loans. The agreement outlines the specific characteristics and criteria that the mortgage loans must meet in order to be included in the Trust Fund. These criteria typically include factors such as the loan amount, interest rate, loan-to-value ratio, credit score of the borrowers, and other relevant underwriting standards. Furthermore, the PSA defines the responsibilities of the Seller regarding the ongoing servicing of the mortgage loans. This includes collecting payments, managing escrow accounts, and handling delinquencies, among other tasks. If the Seller fails to fulfill their obligations, they may be at risk of breaching the agreement. The PSA also addresses the rights and remedies available to both the Trustee and the investors in the event of default or non-compliance by the Seller. It provides a framework for resolving any disputes that may arise between the parties involved in the securitization process. In addition to the standard Washington Pooling and Servicing Agreement, there may be different types or variations of this agreement. Some common variations include: 1. Stand-alone PSA: This is a stand-alone agreement that covers only the pooling and servicing aspect of the mortgage loans. It does not involve any other financial instruments or derivative products. 2. PSA with Mortgage-Backed Securities (MBS): This type of agreement involves the creation of Mortgage-Backed Securities, which are then sold to investors in the capital markets. The PSA outlines how the MBS is created, the terms of repayment, and the rights of the investors. 3. Master Trust PSA: In a master trust structure, multiple mortgage originators contribute loans to a central Trust Fund. The Master Trust PSA governs the relationship between the Trustee and the various originators, outlining the terms and conditions applicable to all the mortgage loans pooled into the Trust Fund. In summary, a Washington Pooling and Servicing Agreement is a contractual arrangement that enables the transfer of mortgage loans from the Seller to the Trustee for inclusion in a Trust Fund. It sets out the rights, responsibilities, and obligations of both parties involved, ensuring a transparent and efficient securitization process.

Washington Pooling and Servicing Agreement (PSA) is a legal document that outlines the terms and conditions under which mortgage loans are sold to a Trustee for inclusion in a Trust Fund by a company. This agreement is an essential component of the securitization process in the mortgage industry. Here is a detailed description of what a Washington Pooling and Servicing Agreement entails: The PSA serves as a contract between the company originating the mortgage loans (referred to as the "Seller") and the Trustee responsible for managing the Trust Fund (referred to as the "Trustee"). The purpose of the agreement is to establish the rights, responsibilities, and obligations of both parties involved in the securitization transaction. Under the terms of the PSA, the Seller agrees to transfer a pool of mortgage loans to the Trustee, who holds them on behalf of the investors who have invested in the Trust Fund. The Trust Fund is a collective investment vehicle created specifically to hold and manage these mortgage loans. The agreement outlines the specific characteristics and criteria that the mortgage loans must meet in order to be included in the Trust Fund. These criteria typically include factors such as the loan amount, interest rate, loan-to-value ratio, credit score of the borrowers, and other relevant underwriting standards. Furthermore, the PSA defines the responsibilities of the Seller regarding the ongoing servicing of the mortgage loans. This includes collecting payments, managing escrow accounts, and handling delinquencies, among other tasks. If the Seller fails to fulfill their obligations, they may be at risk of breaching the agreement. The PSA also addresses the rights and remedies available to both the Trustee and the investors in the event of default or non-compliance by the Seller. It provides a framework for resolving any disputes that may arise between the parties involved in the securitization process. In addition to the standard Washington Pooling and Servicing Agreement, there may be different types or variations of this agreement. Some common variations include: 1. Stand-alone PSA: This is a stand-alone agreement that covers only the pooling and servicing aspect of the mortgage loans. It does not involve any other financial instruments or derivative products. 2. PSA with Mortgage-Backed Securities (MBS): This type of agreement involves the creation of Mortgage-Backed Securities, which are then sold to investors in the capital markets. The PSA outlines how the MBS is created, the terms of repayment, and the rights of the investors. 3. Master Trust PSA: In a master trust structure, multiple mortgage originators contribute loans to a central Trust Fund. The Master Trust PSA governs the relationship between the Trustee and the various originators, outlining the terms and conditions applicable to all the mortgage loans pooled into the Trust Fund. In summary, a Washington Pooling and Servicing Agreement is a contractual arrangement that enables the transfer of mortgage loans from the Seller to the Trustee for inclusion in a Trust Fund. It sets out the rights, responsibilities, and obligations of both parties involved, ensuring a transparent and efficient securitization process.