Securitisation is the sale of a loan to a third party. Thus, institutions sell all or part of their exposures to obtain financing which they use for continuing to develop their business.
What are the consequences of mortgage securitisation?
The institution which granted you your mortgage is no longer your creditor, but remains by law the registered owner and continues to service the mortgage, unless agreed otherwise.
Nevertheless, your bank has to continue to comply with regulations on transparency and customer protection and on sound banking practices.
How do I know if a mortgage is securitised?
If the bank has not informed debtors about the securitisation of their mortgage, and this information does not appear in the Land Registry, there are several ways to find out:
- Through a written request to the bank which extended the mortgage loan.
- Via the Court.
- By searching on the website of the National Securities Market Commission (CNMV by its Spanish abbreviation).