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Unenforceable Securitization Contracts

Lewis, Tracy
; 
Schwartz, Alan
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Yale Journal on Regulation
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Abstract
A “portfolio” here is a bundled set of contracts. In this Article, we address a commercially important example, where a local bank finances home purchases. The bank bundles the resultant contracts—the mortgage-backed securities (MBS)—into a portfolio, which it then sells to a firm, denoted an “originator.” The originator buys portfolios from several local banks and sells the portfolios to a large bank, which markets the portfolios to public- investment vehicles, such as trusts. “Portfolio contracts” govern each of these sales
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http://hdl.handle.net/20.500.13051/8299