Here we hope to lead you through the process of starting your new life.
One of the biggest questions: what is the point in suing the Bank?
1st and foremost, you did nothing wrong ! ! ! you have been forced into this situation….. by the Banks.
The Banks think they have it all their own way because people are allowing them to proceed, unabated.
You have to realise that due to the unethical lending practices, not following strict guild lines, most of these mortgages were given out, unethically. The Banks did not go through in-depth financial checks in most cases, did not do the correct background check, the list is endless as to how they broke their own rules. It is for you to find them when you have received your file and paperwork from the Bank.
Definition of ‘Securitization’ in brief:
The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors. The process can encompass any type of financial asset and promotes liquidity in the marketplace.
Investopedia explains ‘Securitization’ mortgage-backed securities are a perfect example of securitization. By combining mortgages into one large pool, the issuer can divide the large pool into smaller pieces based on each individual mortgage’s inherent risk of default and then sell those smaller pieces to investors.
The process creates liquidity by enabling smaller investors to purchase shares in a larger asset pool. Using the mortgage-backed security example, individual retail investors are able to purchase portions of a mortgage as a type of bond. Without the securitization of mortgages, retail investors may not be able to afford to buy into a large pool of mortgages.