PSA Definition: What is a PSA?
Definition: A PSA is an acronym for Pooling Servicer Agreement.
About two-thirds of the loans made since 2005 have been securitized. Securitization is a process that involves gathering hundreds of loans into one package and selling that package in the secondary market. Often the purchaser is a trust. Trusts are comprised of investors.
After the loans are pooled and sold, the trust hires a service provider to collect monthly payments and distribute that money to the investors. That securitization agreement is called a pooling and servicer agreement or PSA.
About two-thirds of the loans made since 2005 have been securitized. Securitization is a process that involves gathering hundreds of loans into one package and selling that package in the secondary market. Often the purchaser is a trust. Trusts are comprised of investors.
After the loans are pooled and sold, the trust hires a service provider to collect monthly payments and distribute that money to the investors. That securitization agreement is called a pooling and servicer agreement or PSA.
