Christiana Trust A Division of WSFS Bank

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The securitization of mortgage loans goes back to the 1970s and has contributed to the availability and affordability of mortgage credit. It is estimated that some mortgage lenders securitized as much as 70-80% of their outstanding mortgages through the sale of Mortgage Backed Securities (MBS) in the capital markets.

The combination of high foreclosure rates in the wake of the 2008 downturn and high levels of mortgage-backed securitization activity has many people attempting to understand the securitization process and identify the parties to the MBS transactions and their assigned responsibilities.

Parties involved in MBS transactions include the Borrower, the Originator, the Servicer and the Trustee, each with their own distinct roles, responsibilities and limitations.