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In this tutorial, Christopher Rocky, Director of Education at Mortgage Resolution Services, explains the concept of the Pooling and Servicing Agreement (PSA) in relation to short sales. He highlights that many viewers may be unfamiliar with PSAs and their significance. Rocky notes that when signing loan documents between 2002 and mid-2007, borrowers would see a disclosure indicating that loans would be sold into the secondary market as mortgage-backed securities, or collateralized debt obligations (CDOs). He emphasizes that the terms set by these investors in Wall Street transactions directly influence how short sales are managed, making understanding PSAs crucial for those involved in these processes.