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Structuring and Issuance in Residential Mortgage Securitisation

  • Pelma RajapakseEmail author
  • Shanuka Senarath
Chapter

Abstract

The emphasis on this chapter is manifold. The discussion begins with the means of structuring the mortgage securitisation programme. A number of structuring methods including conduit programmes, pass-through and pay-through structures have been taken into consideration. The discussion then moves onto the mortgage origination process while placing an emphasis on the originator in the capacity of the servicer and substitution of residential mortgages. The rest of the chapter looks into aspects of setting up a special purpose vehicle and the subsequent transfer of lender’s rights, the fund manager, and the credit enhancement pertaining to a securitisation programme. Finally, the discussion engages with the process of issuance of securities in residential mortgage-backed security (RMBS) programmes in Australia.

Keywords

Structuring mortgage securitisation Mortgage origination Pass-through securities Pay-through securities Substitution of mortgages Special Purpose Vehicle (SPV) 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Griffith UniversityBrisbaneAustralia
  2. 2.University of ColomboColomboSri Lanka

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