Release these binds! A short conversation with the Reserve Bank of Australia

We now release ALL ENERGY,  in ALL forms that is held in BONDage!

From the Reserve Bank of Australia: Banks' rights, legal or otherwise once they Securitize Mortgages.

An Interesting conversation with Chris Collins | Manager | Media & Public Relations Office Reserve Bank of Australia, forwarded to me. Highlights and bold text are edited in for emphasis!

QUESTION:
Sent: Thursday, 11 October 2012 11:55 AM
To: FOI
Subject: The Secretary Reserve Bank of Australia


My request to you is:

Please could you tell me if Banks retain rights, legal or other once they Securitize Mortgages.

The Reserve Bank of Africa just sent confirmation that Banks DO NOT, if this is different here

please explain as you are the BOSS if you like with the knowledge to answer.

Thank you

xxxxxxx

RESPONSE:

From: RBAInfo@rba.gov.au
To: xxxxxxx@hotmail.com
Subject: RE: The Secretary Reserve Bank of Australia [SEC=UNCLASSIFIED]
Date: Thu, 11 Oct 2012 05:09:23 +0000

Dear xxxxxxx


Thank you for your email.



Australian banks generally do not retain any rights to mortgages (or any other asset) once they are securitised. 
All the rights and benefits of the asset pass to the note holders of the securitisation special purpose vehicle. 
Under Australia’s prudential framework, banks must pass on in full the risks and benefits of an asset in order to ensure that they are no longer required to hold regulatory capital against the asset (known as the ‘clean sale’ test).



Regards



Chris Collins | Manager | Media & Public Relations Office 
RESERVE BANK OF AUSTRALIA | 65 Martin Place, Sydney NSW 2000
p: +61 2 9551 9830 | f: +61 2 9551 8033 | w: www.rba.gov.au



FURTHER QUESTION :
 
From: xxxxxxxl [mailto:xxxxxxx@hotmail.com]
Sent: Friday, 12 October 2012 10:20 AM
To: RBAInfo
Subject: RE: The Secretary Reserve Bank of Australia [SEC=UNCLASSIFIED]



Mr Collins

             Thank you so much for your professional response.

Very clear and to the point, if I understand your reply properly

am I correct in assuming that if a Borrower defaults on their loan

the Lender has no legal right to pursue action if the loan has been

securitized, meaning they have no more obligations after the ''clean

sale'' test.

Thank you

xxxxxxxx



FURTHER RESPONSE:

From: RBAInfo@rba.gov.au
To: xxxxxxx@hotmail.com
Subject: RE: The Secretary Reserve Bank of Australia [SEC=UNCLASSIFIED]
Date: Fri, 12 Oct 2012 03:25:35 +0000

Dear xxxxxxxx



Thank you for your email.



Under a typical securitisation structure, the originating bank continues to perform (for a fee) servicing arrangements on behalf of the securitisation special purpose vehicle (SPV).

These services include collecting repayments from the mortgagee and enacting legal proceedings to repossess and liquidate the asset in the event of default (although the trustee of the SPV can also employ a third party to perform these services). Nonetheless, the risks and benefits of the asset remain with the securitisation investors.



Regards



Chris Collins | Manager | Media & Public Relations Office 
RESERVE BANK OF AUSTRALIA | 65 Martin Place, Sydney NSW 2000
p: +61 2 9551 9830 | f: +61 2 9551 8033 | w: www.rba.gov.au