Financial Ombudsman Service (FOS) is an independent statutory authority in Australia that provides free and independent dispute resolution services to consumers and small businesses with complaints about financial services.
In the context of securitization, FOS can be used by borrowers who have complaints about their securitized loans. For example, a borrower may complain that the loan servicer has not been providing accurate information about their loan, or that they have been charged excessive fees.
FOS can investigate complaints and make recommendations to the parties involved. If the parties are unable to reach an agreement, FOS can make a binding decision.
Here are some applications of FOS in securitization:
- Resolving complaints: FOS can be used by borrowers to resolve complaints about their securitized loans. This can help to protect the rights of borrowers and to ensure that they are treated fairly.
- Managing risk: FOS can help to manage risk in a securitization by providing a forum for borrowers to air their grievances. This can help to reduce the risk of defaults and to protect the value of the securitization securities.
- Providing liquidity: FOS can provide liquidity to the securitization market by providing a mechanism for borrowers to resolve their complaints. This can help to reduce the number of defaulted loans, which can lead to the sale of securitization securities at a discount.