Some people feel this is very unfair, and in fact, it should be the people who now really own the bond (as part of the security) who start legal action and not just the bank.
There have been many court cases about this topic and how securitisation impacts on who really owns consumer’s mortgages and who can and should collect on them when people miss payments. Around the world, these cases have had different outcomes and in some cases the bank is told they can’t take the person’s home and must start new legal action as the security and not just the bank.
The whole topic of securitisation can seem somewhat mysterious and obscure, but as time goes by, more and more people are learning about this process and how the bank uses it to raise funds.
These days, consumer rights are becoming more and more favoured, and the banks and investors are having to be a bit smarter and more open in what they are doing.