Some serious issues have arisen from conflicts created by the dual role that mortgage servicers play - where in several cases, the servicer is also the seller on a securitization deal.

One issue that investors are increasingly looking into is the modifications made on first-lien mortgages to keep intact second-lien mortgages serviced by the selling bank. Grais & Ellsworth hosted a conference called Robo-signers and Other Servicing Failures: Protecting the Rights of RMBS Investors. Panelists discussed the conflicts of interests that can happen when a seller bank also services the loan.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.