Having a trustee or a bank hold title has become common in most asset classes. This change presents an opportunity for trustees and banks still willing to hold title.
- Structures have moved back to trustees taking title to the assets, particularly in mortgages, student loans, consumer loans, and in limited cases, auto loans.
- There has been a rapid expansion into the consumer loan and marketplace lending space, whether the deal uses a common law trust or a statutory trust.
- Banks taking title adhere to rigorous risk thresholds in order to protect themselves and the client.
Trustees have always been responsive to changes in the market. Structures may change, but what is consistent is the trustees’ willingness and ability to respond to what the market needs when it comes to structured finance.
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