Collateral & Securitization Failures: There was no Loan in most Refinances

Below is a link to a video where GlobalCollateral’s Chief Commercial Officer Ted Leveroni discusses collateral settlement failures and he basically states that the securitization failed. Collateral fail and securitization fail are exactly the same thing. In this case, the evidence is indisputable that most transactions are not in fact settled but that they are held “in street name” which means the brokers own it as “nominee.” And that enables the banks as brokers to assert ownership over what is not theirs to own. Account holders are getting statements and payments from a slush fund. This is partial corroboration of my conjecture that there literally was no actual loan in most cases involving a refinance.

The Officer states USB doesn’t know who the investors are and says you’ll have to go to DTC to likely find out.

Look at this short video from DTC –


5 Responses

  1. TO add — given the collateral issue, nothing but any cash out was funded.

  2. This is very accurate. Not all loans involving securitization involve no collateral. As long as the loan comes from on balance to off balance sheet properly there is collateral and valid securitization. This did not happen with the private entity mortgage trust refinances. The loans came from somewhere but never went on any entity’s balance at refinance. This means the loans were just restructured debt — never an asset to anyone. Thus, never any back any security – which is required for valid securitization.

  3. Would love your insight & expertise on student loan securitization. Who owns the Loan after securitization? Can financial institutions sue borrowers of student loan after securitization?

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  4. So, would securitized student loans (SLABS) be considered the same as securitized mortgages? No Loan?

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