Document Assembly on Wall Street (Asset Securitization)

Part of a continuing series on applications of Document Assembly at a Wall Street law firm.  This blogs deals with the application of document assembly to a practice specializing in Asset Securitization.

A corporate legal department may, from time to time, have clients who need to take “debts and obligations owed to them” or “accounts receivables” and securitize them, turn them into assets on their balance books, by selling off the obligations or receivables … turn those “future revenue” into present revenue.

The elements of such a package may include a loan agreement, an origination agreement, securitization agreement, trust agreement and verification agreement.  While the transactions can be quite complex and the assets diverse, there are certain regularities in these instruments that will lend themselves to automation.

For example, each state has required language for loans, certain proforma’s require to make the loan valid and collectible.  The terms of the loan, payment rates, early payment provisions and the like will be standard in their structure, while varying in the specifics.  The schedule of assets being transferred will have a description, a volume/amount, a value (fixed or estimated), and particular restrictions. These schedules can be built automatically, incorporated into the document and totaled using document assembly.

In connection with each asset, notices may need to be sent out to the original debtors as to a change of control of the obligation.  These can be automatically (and accurately) generated from a data source.  A mass mail of certificates and notices can be generated using the same data used for the schedules.  The overall time savings can allow a firm to very profitably value bill from these transactions.


LowHighLowLoan Agreement
LowHighModerateOrigination Agreement
ModerateModerateModerateSecuritization Agreement
ModerateModerateModerateTrust Agreement
LowModerateModerateVerification Agreement

Value measures the value of the document in terms of potential markup based on time to do the document without automation. High would be over five thousand per document; moderate would be over a thousand; low would be in the hundreds per document.
Volume is the likely volume in a given year. Low would be once a month; Moderate would be once a week, High would be daily or more frequent.
Investment is the amounts of time it would take to automate the document to 90% effectiveness. High would be over 250 hours. Moderate would be over 50 hours. Low would be anywhere from an hour up to 50 hours.
Document Type is the name or category of documents that to be automated