RMBS Trust Termination: Cleanup Call & Potential Conflicts

Coauthored by Maclean Amlalo The steps to collapsing an RMBS trust start with the trust’s eligibility. A trust qualifies for optional termination (“optional cleanup call” or “cleanup call”) when the balance of all remaining mortgage loans outstanding falls below a pre-specified threshold (generally between 5% to 35%) of the aggregate original mortgage loans’ balance. Percentages […]