I discuss some important issues to securitization of bank loans. Mostly in the US TILA Regulation Z allows a customer to nullify the loan by rescinding it within 3 years of issue.
Second, when one breaks up a loan into many pieces, in order to foreclose one must bring owners of all the pieces into the courtroom. Biforcation is the term. And a good laywer working for the borrower can get the case thrown out.