Securitization is the process by which a credit institution - either a bank or an independent mortgage provider (IMP) - sells housing loan receivables to another financial intermediary established specially for securitization transactions, known as a special purpose vehicle (SPV), which then funds its holdings by issuing mortgage-backed securities to investors. This article examines the ways in which the originating mortgagee's rights and the underlying collateral can be transferred to the trustee-issuer (SPV) and considers the main legal issues that can arise in a mortgage securitization program under common law and the proposed Regulation of Asset Backed Securities Bill 2009 in Sri Lanka This discussion focuses on some issues relating to Australian mortgage securitization programs as well. These issues relate to the assignment of the originating mortgagee rights to the SPV, which are discussed in Part 2. In Part 3, the issue of notice of assignment to borrowers is considered. Part 4 examines the extent to which the transfer of mortgagee rights to the SPV is a "true sale" or a mere financing arrangement. Part 5 provides a brief discussion of how the SPV is generally structured in Sri Lanka and Australia to effect a "true sale". Part 6 would deal with other miscellaneous issues arising from the assignment of mortgages in Sri Lanka and Part 7 provides a summary of the above legal issues and concludes the article including a discussion of some problems that may arise from the proposed securitization legislation in Sri Lanka.