When discussing the Securitization Process, particular attention must be paid to the Pooling and Servicing Agreement (henceforth referred to as the PSA)  for the Trust.  It is the PSA that governs the entire process, from the origination of the loans for the Pool, through the Servicing of the loans, payment allocation, substitution of loans and anything else applicable to the Pool.

The PSA will identify all the Participants in the transaction.  It will even include breakdowns of individual loans.  This information is necessary to pursue who the actual owners of the notes are, the Certificate Holders.  It will also entail these significant topics:

1. Risk Factors
2. Mortgage Loan Pool
3. Participants
4. Interest Rate Swap Provider
5. Credit Enhancement
6. Servicing
7. Payments to investors
8. Defaults
9. Substitution of loans in the Pool
10. Underwriting Standards
11. Loan Modifications

The purpose of having a copy of the PSA is that it will allow the attorney to develop strategies when dealing with the Servicer, for it is the Servicer who has the authority to make loan modifications, and principle reductions, if the PSA permits.

The PSA will also identify the parties to target for lawsuits, those parties who have Assignee Liability or claim to have Holder in Due Course status, but which the Holder in Due Course can be "broken".

The value of the PSA cannot be overestimated. The information that is contained in it can provide a "road map" to attorneys for legal action. Unfortunately, most attorneysare not even aware that such exists.

LFI is more than happy to assist attorneys in understanding this valuable document and its benefit to their client.  LFI is often able to provide such documents.