Moe Mojahed
Designated Broker
Arizona Home Source Realty LLC.
Direct: 602.390.7777
Soraya Mojahed
Real Estate Consultant
602.980.6161
 
     

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.