Understanding Fintech Chain of Title - Resource

Fintech loans are typically originated by one of a handful of state or nationally charted banks. After origination, the originating bank may transfer the loans to the servicer or an investor, and then the servicer may repackage and sell the loan again through securitizations. Due to this often-complicated structure, as well as the fact that such structures may differ from one fintech relationship to the next, it is important that buyers understand the fintech servicer’s funding structure, any transfer of ownership of a loan after its origination, and how the seller documents those transfers.