12001 MBAA Commercial Mortgage Banker Origination Survey.
2“Securitization” is the term used to describe the process by which an obligee assembles or
“pools” a substantial number of debt obligations (e.g., 1,000 mortgages) and uses the pooled
obligations – and the payment streams they produce – to support the issuance of debt or equity
securities. While a mortgage lender could pool its own mortgages and issue securities backed by them
(“mortgage-backed securities,” or “MBS”), the lender will more typically sell the mortgages to a special
purpose entity that will in turn issue MBS. The process of securitization facilitates the availability of
mortgage credit, as MBS attract capital from sources (such as individual investors) that could not
readily engage in direct mortgage lending.
M E M O R A N D U M
From:
Edward F. Lowry, Jr., Chair
Study Committee on Real Property Title Clearance Methods and Procedures
To:
Committee on Scope and Program
Date:
January 3, 2003
Re:
Study Committee Proposal
This memorandum contains the report of the Study Committee on Real Property Title Clearance
Methods and Procedures. For reasons discussed below, the Committee unanimously proposes the
appointment of a Drafting Committee to prepare a Uniform Mortgage Satisfaction Act (“Act”).
Economic Impact of Mortgage Lending, Sales of Mortgages, and Securitization
Real estate mortgage lending plays a significant role in the United States economy. According to Doug
Duncan, chief economist and Senior Vice President of the Mortgage Bankers Association of America,
U.S. residential mortgage originations should reach $2.42 trillion in 2002. While the volume of
residential mortgage loans dwarfs the volume of commercial loans, commercial mortgage loan
origination levels are nontrivial, totaling $ 73.8 billion during 2001.1
Furthermore, most lenders originating home mortgage loans no longer retain these loans in their
portfolio, but instead sell these loans on the secondary mortgage market, thereby facilitating the
securitization of the loans.2 F