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The loan owner is the entity that has the present right to receive payments on the note. When the owner is also the mortgagee or beneficiary of a deed of trust, it has the right to initiate foreclosure proceedings upon default by the borrower.36

Many mortgages are sold or otherwise transferred to another entity shortly after origination. As a result, the loan owner often is not the bank or mortgage company that made the original loan. Some mortgage loans are pooled and sold (i.e., securitized) pursuant to a trust agreement so that the loan owner is a trust. Large financial institutions typically serve as trustees for these trusts, and the name of the loan owner will usually identify both the trustee and the trust (e.g., Deutsche Bank National Trust Company as trustee for the MLMI Trust Series 2005-SL1 or JPMorgan Chase Bank as trustee for C-Bass Mortgage Loan Asset Backed Certificates, Series 2004-CB).


  • 36 {32} See Ch. 2, infra (discussing authority to foreclose).