I am informed by the Central Bank of Ireland that, although each securitisation is different, in general terms under a securitisation a bank sells a portfolio of mortgages to a special purpose vehicle (SPV). The mortgages are generally not sold to the market and do not change form. When a bank securitises a portfolio of mortgages/debts, it usually transfers the portfolio by way of an equitable assignment or entrustment, which is not the same as a transfer by a bank of its loan book. When a bank securitises a portfolio of mortgages/debts, the beneficial rights to the portfolio are generally transferred to the purchaser, while the bank remains the legal title holder to the portfolio.
The application of the Central Bank's consumer codes depends on the regulatory status of the legal title holder. Where the legal title holder is a regulated entity, it is required to adhere to the consumer codes. For example, the Code of Conduct on Mortgage Arrears applies to the legal title holder of a mortgage portfolio where that legal title holder is regulated by the Central Bank of Ireland.