How to find the PSA (Pooling and Serving Agreement) for your Mortgage-Backed Security
You hear a lot about PSA’s. What are they? What does the information contained within them mean?How do I find mine? I have tried to give a simple tutorial in this blog to help you find your “package”. It took me a long time to figure it out, and I’m not sure as to how clear this is for the novice. If you have suggestions, and comments as to your success, I can update this page and make the needed adjustments.
This tutorial is for someone who already knows what “package” their loan is in. To find the possible “package” your loan might be in, refer to the “How to find my Loan Package” page. Once you have one or a few ideas, you can follow the steps on this tutorial to find the exact package.
What are they?
They are the agreement that the banks and investors made when making these securities.
What does the information mean?
There is no need to start looking for your package unless you know what you are looking for. When they presented these “packages” to the investors they submitted the information to the SEC. Each document can be overwhelming. Filled with a TON of information you don’t understand. But don’t just blow it off. There is a lot of information contained in these filings that are important for you to grasp and have an understand. They “filing you will be looking for are:
Free Writing Prospectus (FWP)
This document describes all the players and their roles in the package. Among other things it tells the investor :
Average FICO score Underwriting Standards
Locations Modification Rules
Interest Rate Explains terms like “Corporate Advances”
Property Type Web Links
Purpose of the loan
When you find the document. You will at first be overwhelmed at the amount of information contained. Don’t be. Look for the specifics. Identify each player, and their role. Look at the information concerning modifications, and how they are to be handled. Look for links to specific websites that will lead you to either following the loan package, or pages that even further describe the “Mortgage Pool”.
Let’s begin by using an already known Trust Pool. This one is specifically Nomura Home Equity Trust Loan Series 2006-WF1.
1) Use the Table of Contents to give you search terms, and what information will be available for this package.
2) Use the “find” method (ctrl f ) to search for specifics so you don’t get overwhelmed. Read each section that you need to understand. The Interest Rate Swap and other more specific information is beyond my grasp right now, but that’s not what I need to know, so I skip it.
The Table of Contents for this package has “The Mortgage Pool”. But as you look through this document, I read descriptions of the pool….I got to wondering if there wasn’t something, somewhere which described each mortgage in the pool specifically.
I go to www.SECinfo.com and type in Nomura Home Equity Loan Trust Series 2006-WF1 (you would type in your specific “ package”) I keep searching around until I find a page with as much information on the package as I can get. This particular information is at:
Once you get to this kind of page in your “package” look at every filing that you can. You will find more information by looking at each document. Download and save each document. Don’t try to absorb it in one sitting. You are specifically looking to see that you loan is in the “package”. The only way to do this is to find the “Mortgage Pool”. So I type the words “Mortgage pool” into the search for this filing .
Look at each “line” that mentions the words “mortgage pool”. In this example, “Line 552…..Mortgage Loans are more particularly described in the Prospectus Supplement, dated June 28, 2006 (the “Prospectus Supplement”)”
Bingo! I can now see if my loan is in the package and how it was presented to the investors. I need to find the “Prospectus Supplement, dated June 28, 2006” . But wait…what about the term “mortgage loan”? Let’s search that from the same place:
Look at all the information you can get on this package! It states the “Rules” they must adhere to for MERS…How each Mortgage is to be “Assigned”. This is exceptional information. It can lay to rest the “endorsed in blank” defense the Banks are using. SAVE this to your favorites, you don’t want to get too in depth with this until you make sure your loan is in this “package” . Take note of the lines that may contain interesting and fruitful information as you scroll down the page. You will need this information IF your loan is in this package.
Still on the hunt for that supplement….
At this point you will spend quite a while looking…searching…but don’t give up. If the page you go to looks interesting, bookmark it, but don’t read it all until you KNOW that your loan is in the package.
Keep hunting different terms. Look at each and every FWP, they are different. Keep searching.
BINGO! Finally found the loan pool!
( Nomura Home Equity Loan Trust Series 2006-WF1)( Click FWP)( The third FWP down from the top)
Be patient, this is a HUGE page. Once it is loaded, save it. It contains a TON of information about each loan:
State the property is in.
Type of Loan
Now all you have to do is type in you loan number. Compare the information and double check that it is your loan. Once you are sure it is your loan, compare the information they gave to the investors to the reality of your loan. Does it match?If it does, this is your package. If not, try again until you get the right package.
Once you find your package, you will want to open a new document in you word processing program. Go back to the notes you made in the previous searches. Choose one subject and find all the pertinent information for that subject. Use Topics like:
“Assignment of Mortgage”
“Chain of Title”
“Registration with MERS”
Copy and paste the pertinet information you find into that now open text document. If you think it’s important copy/ paste. You can always edit it out later.
Why is this important? You need to know and understand what was supposed to happen with the mortgages in the pool. You can blow holes in the “endorsed in blank” defense, because it is written in the agreement how all mortgages are to be handled. There are clues as to what papers should be present. For example, they shall give the assignment in “recordable form”. Don’t pull out the PSA card right away. Get as much information about what they have before letting them in on your knowledge.
If you are lucky enough, and I use the term loosely, to have a loan to which there is a website attached, you can track the information on the package, the amount of money they are telling the investors you owe…..use this information and compare it to what they are asking the court for in arrearages….Does it match?
Having the patience to find this information no matter what company your loan is pooled through is very valuable. Educating yourself is the first step. This information is useful when fighting foreclosure / or modification. It will give you an understanding of what the terms mean, who / what they are really referring to.
They are making you stick to the “rules”, they need to as well. Your lawyer will not know the specifics of your “Pool” and it’s “PSA”. Finding it and extracting the information is not a quick and easy task. You can save yourself a lot by being able to present this to your attorney.