Finding Pooling and Servicing Agreements (PSA’s) for Securitized Mortgage loans could Kill your Foreclosure
The “Pooling and Servicing Agreement” is the legal document that contains the responsibilities and rights of the servicer, the trustee, and others over a pool of mortgage loans. The Pooling and Servicing Agreement can be a stand-alone document or it can be part of another paper, usually called the “Prospectus.” If the securitization is public, these documents must be filed with the Securities and Exchange Commission (SEC), and will be available to the public at www.sec.gov. Locating a Pooling and Servicing Agreement on the SEC website can be a challenge. The most important information you will need to find the Pooling and Servicing
How to Find Pooling and Servicing Agreements
Agreement is the name of the original lender and the title of the pool of loans. We will work through an example below. Assume that the lender is Ameriquest Mortgage Co. We don’t know the name of the pool that the homeowner’s mortgage ended up in, but we do know that the mortgage was made on June 1, 2002.
Go to www.sec.gov and click on “Search for Company Filings” under “Filing & Forms (EDGAR).” Under “General-Purpose Searches,” click on “Companies and other filers.” Then, in the “Enter your search information” box, type in “Ameriquest” next to “Company name” and click on the “Find Companies” button.
The page you are now looking at shows a long list of the names of securitized pools of loans. We know the mortgage was made on June 1, 2002. Look for the entry titled “AMERIQUEST MORT SEC INC ASS BK PAS THR CERTS SER 2002 2.” The document number is CIK 0001175125. Click on that number. We selected this entry because it said 2002 on it and the loan in question was made in 2002. There may be several other pools of mortgage loans that Ameriquest securitized in 2002 but this is the first one we come to on this list (when reviewed in late February 2007) so we will pull it up.
Now you see a list of documents filed with the SEC that are related to this pool of loans. Scroll down to the bottom and you will see a document titled “Prospectus.” This is the document that will likely be the one you want, assuming that the mortgage loan you are concerned about is in this pool. We can only make an educated guess, unless you know the name of the securitized pool in advance (which is unlikely). Click on either “htm or text” next to this document and the Prospectus will appear. Now, bookmark this document on your web browser, so you can come back to it easily in the future.
Is this likely to be the document you want? Scroll down to page S-2 and you will see a Table of Contents. Included in that is the “Pooling and Servicing Agreement” which starts on page S-76. Also, scroll down one more page, past the Table of Contents, and you will see a “Summary of Prospectus Supplement.” Certain important information is listed there, including the cut-off and closing dates for loans that will be included in this pool. The closing date is June 7, 2002. Based on this information, you can assume that this document governs the responsibilities of the servicer of the mortgage loan in question, unless that servicer tells you otherwise and can back it up with a reference to a different agreement or pool. Other important information listed in this Summary includes the title of the pool, and the identity of the servicer and trustee. The servicing rights may have been sold since this document was filed and the current servicer may be a different company but the trustee (the legal holder of the mortgage) should be accurate.
Go the Pooling and Servicing Agreement to find what you need to know. It should describe how the servicer is paid and by how much, who keeps late and other fees, what authority it has to modify the loan or engage in workouts with homeowners, and its obligations to pass mortgage payments on to the trustee.
Some of the best information I get comes from intrepid consumer researchers out there who care enough to dig into these things. Perhaps the most powerful thing about this and other online forums is the ability for consumers and advocates to share what they’ve found. In my estimation, what this pro-se Defendant found is enough to blow the lid off his foreclosure case…..read on:
How do I find the Pool number for a Mortgage Backed Security?
What Does MBS Pool Number Mean?
A number or alphanumeric character assigned to a mortgage-backed security (MBS) by the issuer as an identifier of that security. Pool numbers are typically six digits in length. Different issuers such as Freddie Mac, Fannie Mae and Ginnie Mae use different alpha characters as the initial digit in their pool numbers to identify the pool as their issue. For example, a Freddie Mac 30-year pool number might be D54321 while a Fannie Mae 30-year pool number might be F54321.
Investopedia explains MBS Pool Number
Mortgage-backed securities (MBS) traders frequently use pool numbers (as opposed to CUSIP numbers) to identify and trade securities as the pool number is more easily quoted, and the initial digit in the pool number frequently identifies the issuer. Those familiar with pool numbers might also be able to quickly distinguish between older and newer issues by the pool number.
Fannie Mae REMICs and Mortgage Backed Securities
Basics of REMICs
A Real Estate Mortgage Investment Conduit (REMIC) is a type of multiclass mortgage-related security in which interest and principal payments from mortgages are structured into separately traded securities. Introduced in the 1980s, REMICs further enhanced the mortgage securities market with their increased efficiency.
REMICs direct the cash flow from the underlying mortgage-related collateral into separately traded securities called classes. These classes are distinguished by their sensitivity to the prepayment risk of the underlying mortgage-related collateral. Therefore, they may be more or less sensitive to prepayment risk, bear different interest rates, and have various average lives and final maturities.
This section further details these securities:
The Fannie Mae Benchmark REMICs page describes details of the program, including key features, issue size, pricing mechanics, and underlying characteristics.
The REMIC Structure page describes the basic structure of a REMIC security, as well as Fannie Mae's senior/subordinated REMIC security, Wisconsin Avenue Securities (WAS).
The Fannie Mae REMIC Guaranty page discusses Fannie Mae as a guarantor of REMIC securities.
The Classes page describes the types of REMIC classes.
REMIC/SMBS Tax Factors allows users to search for tax information on all Fannie Mae issued REMIC and SMBS securities.
The REMICs & Your Taxes page details the tax issues for REMICs.
The Before You Invest in REMICs page reminds potential investors to read the related REMIC disclosure documents and consult with their financial and tax advisors before deciding to invest in a REMIC.
Fannie Mae REMICs
Collateral for REMICs includes mortgage loans that have been pooled together as Fannie Mae MBS (single-family or multifamily), stripped mortgage-backed securities (SMBS), classes from other REMICs, and whole loans (single-family or multifamily).
Fannie Mae REMIC Disclosure Documents
Fannie Mae disclosure documents for REMICs generally include the following:
• For REMICs backed by mortgage-related securities, the REMIC Prospectus Supplement and its related REMIC Base Prospectus,
• For REMICs backed by mortgage loans, the transaction REMIC Prospectus or Prospectus Supplement and REMIC Base Prospectus,
• the most recent Annual Report on Form 10-K (PDF) filed with the Securities and Exchange Commission (SEC), and
• certain reports filed with the SEC subsequent thereto, or
• any other related document incorporated by reference.
Investors can obtain REMIC disclosure documents by calling 1-800-237-8627, faxing a request to (202) 752-4624, or by accessing certain REMIC documents online, including the following:
The REMIC Prospectus Supplement contains information about a specific REMIC trust, including the description of the classes within that REMIC, its collateral, the rules for distributing the collateral's cash flow, and risk factors. The information in the REMIC Prospectus Supplement is specific to a particular trust and is therefore more complete than the information in the REMIC Base prospectus. Prospectus Supplements are used to provide the details related to a particular transaction and "supplement" but do not replace the information in the REMIC Base Prospectus. Prospectus Supplements should be read together with the REMIC Base Prospectus and any other disclosure documents referred to in the Prospectus Supplement. REMIC Prospectus Supplements are identified by a year and a trust number. For example, REMIC 2001-010 identifies REMIC deal 10 issued in 2001.
The REMIC Base Prospectus contains basic information about REMICs, including the nature of the guaranty, yield considerations, class definitions, and abbreviations. It is referred to as a "base" prospectus because information in the prospectus supplement is based on, or builds upon, the information in the base prospectus.
In some instances, REMICs backed by mortgage loans (rather than mortgage-related securities), a transaction-specific REMIC Prospectus is created. A transaction specific prospectus combines into a single document the disclosure information for a particular transaction.
The Final Data Statements documents include information about the assets that back the mortgage security as of the settlement date for most Fannie Mae REMIC transactions, including where applicable, the CUSIP numbers, pool numbers, issue dates, and balances on the REMIC settlement date.
The Annual Report on Form 10-K (PDF) describes the business and operations of Fannie Mae and our financial condition as of a specified date. It contains audited financial information and is filed with the SEC annually. Fannie Mae also files quarterly and current reports, among other documents, with the SEC.
Other Useful REMIC Information
In addition, Fannie Mae provides information related to REMICs, including the following:
PoolTalk® provides information about Fannie Mae MBS, SMBS, Mega, REMIC, and Grantor Trust securities. PoolTalk includes current and historical factors, CUSIP numbers, original issue balances, interest rates, issue and maturity dates, weighted-average coupons (WAC), weighted-average maturities (WAM), and other data.
The REMIC CUSIPs files contain lists of classes and their related CUSIP numbers. Class CUSIP numbers usually appear on the cover page of the REMIC Prospectus Supplement for REMICs backed by mortgage-related securities and on the cover of the transaction specific Prospectus, for REMICs backed by mortgage loans.
The Monthly Floater Resets page contains monthly information for all adjustable-rate, or "floating rate," REMIC classes. They are posted on or about the interest determination date for the relevant classes.
The Recently Priced Transactions page shows recently priced transactions, including dealer, trust number, deal size, coupons, and settlement date.
The Multifamily Securities Locator Service provides a central location for obtaining multifamily MBS disclosure information. Users can locate and download information on multifamily securities, create a portfolio to track specific securities, view reports of loan activity, and choose to receive e-mail updates on changes to pools.
Multifamily Assured Schedule Payment Trust™ (MAST™) contains links to the prospectus supplements for our Multifamily Assured Schedule Payment Trust Securities.
IRS Publication 938
This publication contains directories relating Treasury to real
estate mortgage investment conduits Internal Real Estate (REMICs) and
collateralized debt obligations Revenue (CDOs). The directory for each
calendar quarter is based on information submitted to the IRS
Mortgage during that quarter. This publication is only available on the Internet.
For each quarter, there is a directory of new Investment REMICs and CDOs, and a section containing amended listings. You can use the directory to find the representative of the REMIC or the issuer of the CDO from whom you can request tax information. The amended listing section shows changes to previously listed REMICs and CDOs. The update for each calendar quarter will be added to this publication approximately six (REMICs) weeks after the end of the quarter.
Other information. Publication 550, Investment Income and Expenses, discusses the tax treatment that applies to holders of these investment products. For other information about Information REMICs, see sections 860A through 860G of the Internal Revenue Code (IRC) and any regulations issued under those sections. (And Other Publication 938 is only available electronically. To get Publication 938, including back issues of the publication, visit the IRS website http://www.irs.gov/
See: IRS Publication 938