ASF creates code to track home loans through securitization adding more transparency
Could this added transparency with your personal information be abused? Will there be laws in place to make possible abuse illegal?
American Securitization Forum, ASF, created the:
…new global ASF Loan Identification Number Code (ASF LINC™) is a sixteen digit identification code that captures underlying loan type, origination date and country of origin, in addition to randomized alphanumeric data, to create a unique ID for a wide range of loans that may be pooled and sold into the capital markets.
It’s intent is to track individual loans to provide transparency to everyone who is a stakeholder in the loan once it’s securitized. It’s intent sounds noble, & beneficial. One of the critical supremely complicated problems of the housing market, is the lack of motivation of holders of securitized mortgages to negotiate in good faith to help responsible people stay in their homes.
Other factors complicating fixing the housing mess, is the near impossibilty of contacting “owners” of the mortgage for various reasons. Finally, it is clear that the securitizing of mortgages allowed banks & mortage companies to dump decades of appropriate risk analysis out the window as they had no motivation to do so as the mortgage was securitzed and sold off in bundles releasing them of any possible downside.
I wonder if this added transparency could have a downside and if rules should be put in place to stop any possible abuses now.
The global ASF LINC is linked to the CUSIP and/or ISIN number of the securitized product, allowing investors to track the loan throughout its lifespan and provide a chain of accountability between loan originators and investors. The ASF LINC creates standardization and consistency in connecting and reporting monthly performance data of a loan. In addition, it provides a means to connect added value data and information from third party providers like credit bureaus. Assigned at no cost to issuers, the ASF LINC is stored in a central loan data repository administered by S&P FIRMS. The ASF LINC is not designed or intended to replace the primary servicer’s loan number, but rather to provide users with a means to track and monitor a loan throughout its life after the loan has been securitized.