Securitization Audit Services
During the housing boom, millions of mortgages were bundled together and sold to Wall Street investors as Mortgage-Backed Securities (MBS). The process of transferring these loans into trusts is governed by strict rules known as a Pooling and Servicing Agreement (PSA). When these rules are broken, the trust may not legally own the loan.
At Secure Defense Audit, our securitization audit services are designed to trace the complete history of your loan and determine if the entity claiming to own your mortgage actually has the legal right to enforce it.
What We Look For in a Securitization Audit
A securitization audit is a highly technical investigation into the paper trail of your mortgage. We focus on identifying fatal flaws in how the loan was handled after you signed the closing documents.
- Chain of Title Verification: We track every assignment of the mortgage or deed of trust to ensure there are no missing links. A broken chain of title can destroy a lender’s standing to foreclose.
- Note Endorsements: The promissory note must be properly endorsed (signed over) to each subsequent owner. We check for blank endorsements, forged signatures, and missing allonges.
- PSA Compliance: The trust that supposedly holds your loan has a strict cutoff date. If your loan was transferred into the trust after this closing date, the transfer may be void under New York trust law.
- Robo-Signing Detection: We analyze the signatures on your assignments and affidavits to identify known “robo-signers”—individuals who signed thousands of documents without verifying their accuracy.
Why Securitization Matters
If your loan was securitized, your original lender likely sold it within days of closing. The company currently sending you statements is just a servicer—a debt collector acting on behalf of the trust. But if the loan was never legally transferred to the trust, the servicer has no authority to collect payments or initiate foreclosure.
Our securitization audit provides a detailed, factual report of exactly where the lender failed to follow the law. This gives homeowners powerful leverage to challenge foreclosure actions or negotiate better terms.
Get the Facts About Your Loan
Securitization is complex by design, and most borrowers never see the records behind it. Secure Defense Audit locates and organizes those records so you can read them. If you have questions about how your loan was handled during securitization, call 888-450-4221 to discuss what an audit would and would not cover in your situation.
Sources We Work From
Every finding in an SDAudit report is tied to a record you can look up yourself. Trust identity, cutoff dates and pooling and servicing agreements come from the SEC’s EDGAR filing database. Assignment and recording history comes from county recorder records and the publicly searchable MERS Servicer ID lookup. Servicing, disclosure and dispute obligations are set out in Regulation X and Regulation Z, and perfection of security interests is governed by UCC Article 9.
Before You Hire Anyone
Loan auditing is a field with a real history of bad actors. The Federal Trade Commission has warned consumers about firms that sell forensic loan audits as a guaranteed route out of foreclosure, and the Consumer Financial Protection Bureau has brought enforcement actions against companies that did so while charging illegal advance fees. Read both before you pay anyone in this industry, including us.
What we sell: a document review at a published flat rate, delivered on a stated timeline, with each finding tied to its source record. What we do not sell: legal advice, legal representation, foreclosure relief, loan modification, or any promise about the outcome of a dispute. Those conversations belong with a licensed attorney in your state.