Mortgage-Backed Securities
Definition
- A type of asset-backed security whose value and income are backed by a mortgage or a pool of mortgages. Also known as a "mortgage pass through" or a "mortgage-related security."
Synonyms
mortgage collateralized security
Related Terms and Acronyms
- Asset-Backed Securities (ABS) — Acronym, Very Important,
- Securities backed by a pool of assets.
➥ Financial security made up of a bundle of assets. - Equity — Definition,
- Ownership in an asset.
- The value of a property minus outstanding mortgage debt and other liens.
- Fixed-Return Investments — Definition,
- Investments that provide a stable return.
- Issuer — Definition,
- A legal entity that develops, registers, and sells securities including stocks, bonds and derivatives.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Portfolio Lender — Definition,
- A company that underwrites mortgage loans and keeps them on the books instead of selling them on the secondary market.
- Secondary Market — Definition,
- A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
- Secondary Mortgage Market — Definition, Important,
- The trade in home loans that are bundled together and sold as securities to investors. It frees money so more people can get mortgages.
- Security — Definition,
- Property designated as collateral.
- A document stating ownership of a stock or bond.
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- Syndicated Loans — Definition,
- Loans given to a company that are backed by a group of banks who share the risk of a large transaction. There is usually a lead bank and several participating banks.
