What challenges do auditors face when auditing mortgage-backed securities affected by securitization fraud?

Auditors encounter numerous challenges when auditing mortgage-backed securities affected by securitization fraud. These challenges include tracing the ownership and transfer of mortgage loans, verifying the accuracy of loan documentation, and assessing the true value of underlying collateral. Additionally, auditors must navigate complex legal and regulatory frameworks, coordinate with various stakeholders, and overcome potential obstacles such as information asymmetry and resistance to disclosure. Despite these challenges, rigorous audit procedures and investigative techniques are essential for uncovering securitization fraud and restoring trust in the integrity of the mortgage market.