The financial and mortgage crisis
Which is spreading from the United States at the beginning of the year to Europe, is still painfully remembered especially by shareholders: Capital markets around the globe have recorded almost historic discounts in turbulent trading sessions and have left their mark on the Depots of many investors lasting traces.
However, the strains on structured products nowadays do not only extend to what is happening on the bearer parquet floor, but also draw their attention to American home builders who are not involved in the business practices of Sanglo-Sising investment banks.
In the financial industry, a new sport has been established: disbursed loans are securitized and resold. Legally, there is nothing wrong with this approach at first: after all, a loan initially represents nothing more than a claim and, accordingly, can be sold just like any other asset.
Securitization of mortgage-backed loans
In particular mortgages – means that lending banks are eliminating the credit risk associated with real estate financing. At first, the borrower does not notice the sale of his loan the installments will continue to be paid to the bank and recorded on the loan account.
Several reports in relevant media have shown that many real estate owners, whose financing is taking longer, are concerned about the potential disadvantages of having a loan sale. Unfair scenarios and images circulated and led to numerous anxious inquiries from bank customers at their institute, calling for eager politicians who were trying to reassure themselves with demands for a ban on business practices.
The mortgage loan being sold by the financing bank
Experts, however, weighed down: the mortgage loan being sold by the financing bank to another institution (whether it be another bank, a pension fund or a financial investor) has no effect on the borrower. The loan conditions govern the essential components of the contract such as the amount of the installment, the interest rate and its adjustment modalities, and the term of the contract. A new owner of the claim from the mortgage must feel bound to these clauses as well as the local bank.
Consumers should therefore not, in particular, respond to tenders from the principal bank in which, in return for a mark-up, the loan is suspended by the credit institution. The customer does not benefit from such an obligation.