Securitized Loan, is a Subrogation Possible?
When a bank decides it wants to re-enter the liquidity previously used to lend money through a loan, it can decide to resort to securitization, or to a financial transaction that allows the institution to collect an economic consideration, in the form of issue and placement of bonds, selling their credit to a specialized financial company, with the advantage of immediately collecting liquidity without sometimes having to wait decades of amortization as agreed with the borrower who for example signs a thirty-year mortgage.
The company that purchases the credit from the bank issues as a guarantee the bonds related to the loans themselves, transforming the credits into a “card”, from which securitization. Subsequently, the company sells the securities issued on the market with the aim of recovering the amount paid to the bank, making its profit.
What changes for the borrower.
We assume that the borrower must be notified of the transfer of the loan to another company. Contractually nothing changes: the customer continues to pay the loan installments to his bank which, in turn, will pay the new creditor. The previous commercial terms of the loan remain unchanged.
Subsidiary and renegotiation.
In our Facebook Group we received this question: “Is it possible to ask for a renegotiation or a subrogation for the securitized mortgages?” part of the financial company that owns the credit, but the transaction is feasible, as long as the latter has the intention and interest to grant us better conditions. In the case of subrogation, the operation appears simpler as it is protected by an agreement signed in 2007 between the ABI and the Council of Notaries, in which, referring to the law 130/1999, it is specified that the securitization of a mortgage it must not be an obstacle to subrogation.
In any case, one of the fundamental principles of the portability law, also known as the Bersani law, is that the old bank (or whoever it) cannot object to the subrogation of the loan.