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Borrowr's protection from Mortgagee assignments

Discussion in 'Finance & Banking' started by Rob G., 1st Jul, 2007.

  1. Rob G.

    Rob G. Well-Known Member

    6th Jun, 2007
    Melbourne, VIC
    Hi all,

    What protection do borrowers have when a Mortgagee assigns the debt to downstremm institutions who then get into difficulties.

    Many (most) subscribers will have loans against property with 'banks' which they think are low risk 'ethical' lenders.

    However, these are often assigned to downstream intermediaries who use the cash flow & securities to issue notes etc. These intermediaries may not be so secure or well regulated.

    If they are poorly managed and get into difficulties then thay can exercise their power of sale over the borrower's property through no fault of the borrower.

    I guess I am thinking of a scenario like ACR in reverse - i.e. the downstream creditors are 'dodgy'.

    Any comments very welcome,