How do mortgage lenders and financial institutions typically defend against accusations of securitization fraud?

Mortgage lenders and financial institutions often defend against accusations of securitization fraud by asserting adherence to industry standards and regulatory compliance. They may argue that any discrepancies or irregularities are isolated incidents or the result of oversight rather than intentional misconduct. Providing documentation to support the legitimacy of loan origination and securitization processes is common. Additionally, they might emphasize the complexity of financial transactions involved and point to third-party validations or ratings as evidence of due diligence. Legal representation and negotiation are also utilized to mitigate reputational and financial damages.