Computershare often appears on mortgage titles as part of a custodial arrangement facilitating the registration of mortgage loans for the benefit of Mortgage Backed Securities (MBS) investors.
Custodial Agreement
Computershare's listing on mortgage titles is indicative of its role as a third-party custodian. This function involves reviewing collateral documents and ensuring that loans meet specific requirements set forth by mortgage-backed securities programs. This review and certification process supports the overall integrity and compliance of the financial instruments.
Certification to Regulatory Bodies
A critical function of Computershare is to provide necessary certifications to regulatory bodies such as Canada Mortgage and Housing Corporation (CMHC). These certifications confirm that the loans comply with the standards of various mortgage-backed securities programs, which is crucial for the successful management and issuance of these securities.
No Beneficial Interest in the Mortgage Loans
It is important to emphasize that Computershare holds no beneficial interests or rights in the mortgage loans. Their involvement is purely administrative and custodial, centered on document verification and compliance assurance. This ensures that their role does not influence the ownership or management rights of the mortgage, maintaining clear boundaries within the financial structure.
Experienced Service Provider
With a wealth of experience serving as a custodian and administrator for a multitude of financial services, Computershare is a trusted partner to many Canadian bank and non-bank lenders. Their extensive track record in managing over 10,000 Mortgage-Backed Securities issues in Canada attests to their expertise and reliability in the sector.
About Computershare
As a global leader in financial services, Computershare offers expertise in transfer agency and share registration, corporate trust services, proxy solicitation, and stakeholder communications. They are also known for their specialized services in various other financial and governance domains, supporting the effective operation of capital markets.
Conclusion
Computershare's presence on mortgage titles is a standard and critical practice, reflecting their significant role as custodians in the mortgage-backed securities market. Their involvement is crucial for ensuring compliance with legal and regulatory frameworks, enhancing the transparency and security of mortgage registrations