Mergers and acquisition transactions for securitization sponsors and servicers present unique issues that require in depth knowledge of the underlying securitization structures and risks, as well as related financing, regulatory and technology issues.

In this Legal Update, we address the 10 biggest issues that arise when M&A meets securitization:

·    Is it a securitization? Is it a whole loan deal? No, it’s an M&A deal!

·    How will the purchase be financed?

·    How will licenses affect structure and timing?

·    What due diligence should be performed on the contracts relating to the financial assets?

·    What consents are required?

·    Should the seller engage in reverse due diligence?

·    What SEC disclosure issues arise?

·    Who will service the assets after closing?

·    How will the technology be transitioned?

·    How will the purchase agreement differ from a “regular” M&A deal?

Read the Update.