Securitization is a method for obtaining capital from investors whereby loans and real estate are segregated from other assets, and securities are issued backed by those assets. Within such a scheme, the issuer of the securities is usually a "paper company" (special purpose company (SPC), etc.) with no actual business operations to ensure bankruptcy remoteness, which protects investors and thus makes the investment itself more attractive. The servicer plays the critical role of soundly transferring collections, rents and other funds to the hands of these investors.
