Mortgage-backed securities |
   |
Mortgage-backed securities are issued in countries around the world, including countries in Latin America and Southeast Asia. Volume is high in Europe and Japan. Some important markets are described in the books recommended below.
Definition: Mortgage-backed securities are a bundle of mortgages that have been sold by banks to Fannie Mae, who then repackages them and sells them to individual investors.
Mortgage-backed securities
Mortgage-Backed Securities - MBS
Mortgage-Backed Securities Clearing Corporation
mortgage-backed security
mortgage-backed security
mortgage-backed security
mortgage-backed security
Mortgage-pipeline risk
mortgageable ...
(1) Securities backed by a pool of mortgage loans. Among the various types are principal-only mortgage-backed securities.
(2) Bonds which are a general obligation of the issuing institution but are also collateralized by a pool of mortgages.
Banking regulators have discouraged investing in certain types of derivative mortgage-backed securities, unless these are used as a hedging device to limit interest rate risk.
Professional financial advice is required for individuals & businesses.
1/13/2011 4:32:24 AM 0.0146 Loan Dictionary - CM group - Cm, Cma, Cmbs, Cmbs (commercial Mortgage-backed Securities), Cme, Cmg Plan, Cmi, Cmir, Cml, Cmo ...
Mortgage-backed securities - Securities issued by government-related agencies that buy up mortgage loans from lenders such as banks and savings and loan associations.
Mortgage-Backed Securities (MBS): Certificates that represent ownership in a pool of mortgages. The holders of these securities receive regular payments of principal and interest.
Mortgage-backed securities: Debt securities where the underlying asset 'backing' or collateral is a pool of mortgages.
Mortgage-backed securities known as Collateralized Mortgage Obligations (CMOs) or Real Estate Mortgages
Investment Conduits (REMIC) are structured differently.
Mortgage-Backed Securities: Bond-type investment securities representing an undivided interest in a pool of mortgages or trust deeds.
Mortgage-Backed Securities Clearing Corporation (MBSCC)
"Founded" in 1979, MBSCC is the sole provider of automated post-trade comparison, netting, risk management and pool notification services to the mortgage-backed securities market.
Mortgage-Backed Securities Certificates backed by pooled mortgages (such as those issued by Fannie Mae or Ginnie Mae). Issuing agencies buy mortgages from lending institutions and repackage them as securities, which are then sold to investors.
Mortgage-backed securities (MBS) on which registered holders receive an aggregate principal and
interest payment from a central paying agent on all of their certificates. Principal and interest payments are
disbursed on the 20th day of the month.
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock Exchange that operates a clearing service for the comparison, netting, and margining of agency-guaranteed MBSs transacted for forward delivery.
Mortgage-backed securities not issued by or guaranteed by a U.S government agency or U.S. government sponsored enterprise. The mortgage loans comprising whole loan pools are generally loans that do not meet GNMA, FNMA, or FHLMC requirements.
Mortgage-backed securities (MBS) are substantially more complex to price than vanilla bonds, due to the uncertainties implied by the prepayment option included in the instrument's structure.
Mortgage-backed securities are created when the sponsor buys up mortgages from lenders, pools them, and packages them for sale to the public, a process known as securitization.
In the mortgage-backed securities market, whole pools refer to mortgage certificates where ownership is represented by an undivided interest in entire pools of mortgages.
Stripped mortgage-backed securities (SMBS)
Securities that redistribute the cash flows from the underlying generic MBS collateral into the principal and interest components of the MBS to enhance their attractiveness to different groups of investors.
Lehman Brothers Mortgage-Backed Securities Index
A benchmark index that includes 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), ...
Fannie Maes: Mortgage-backed securities guaranteed by the FNMA for payment of principal and interest.
FDIC insured: An account that is insured by the FDIC, currently up to $100,000.
Fannie mae issued mortgage-backed securities pool that have an original maturity of 15 years.
dynamic ...
Mortgage-backed securities can offer monthly income, a fixed interest rate and even government backing. Profit From Mortgage Debt With MBS
To take advantage of all your investing options, you need to know what your choices are.
Secondary mortgage market Buying and selling existing mortgage loans, which are often pooled and traded as mortgage-backed securities.
Dealer options Over-the-counter options, such as those offered by government and mortgage-backed securities dealers. Dealer's spread See: markdown; underwriting spread. Dear money British term for tight money.
[Harvey] agency swap program A method of securitization in which single family residential mortgages conforming to agency underwriting guidelines are swapped for mortgage-backed securities issued by Fannie Mae or Freddie Mac.
MBO See: Management buyout MBSCC See: Mortgage-Backed Securities Clearing Corporation MC The two-character ISO 3166 country code for MONACO. MD The two-character ISO 3166 country code for MOLDOVA, REPUBLIC OF.
secondary mortgage market A type of market, where existing mortgages and mortgage-backed securities are traded. secondary offering The offering of a large unit of a security by a current shareholder. Also known as secondary offering.
Lehman Brothers Aggregate Bond Index A benchmark index made up of the Lehman Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, ...
A government owned corporation that acquires, packages, and resells mortgages in the form of mortgage-backed securities. 2.
spread sectors Spread sectors include all non-Treasury investment grade sectors including federal agency securities, corporate bonds, asset-backed securities, mortgage-backed securities and commercial mortgage-backed securities.
Ginnie Mae guarantees timely payment of principal and interest on certain mortgage-backed securities (i.e. MBS).
The interest rate cycle strongly influences the performance of high-quality fixed-income assets, such as government bonds and mortgage-backed securities.
They intern issue debentures, short-term notes and mortgage-backed securities. Also see FNMA Home Page. FEDERAL FLOOD INSURANCE A form of insurance designed to reimburse property owners from loss due to the defined peril of flood.
TBA - To Be Announced - A term used to describe a forward mortgage-backed securities trade. Pass-through securities issued by Freddie Mac, Fannie Mae and Ginnie Mae trade in the TBA market.
It provides financing for the housing market by buying mortgages on the secondary market, pooling them and selling them as mortgage-backed securities (MBS) to investors. The fall in U.S.
In a mortgage-related security, an issuer's obligation to repay principal or pay interest on the security is secured by a large pool of mortgages or mortgage-backed securities.
But it was Wall Street`s securitization of these mortgages-mortgage-backed securities-that eventually turned the housing slump into a full-scale banking crisis.
Interest-only obligation (or IO obligations): A tranche of mortgage-backed securities whose owner receives only the interest (or a portion of the interest) on the underlying mortgages.
Unit trusts are sold by brokerage houses, which assemble portfolios, usually of bonds or mortgage-backed securities, and sell off pieces (called unites) to investors. Like a mutual fund, a unit trust offers a slice of a diversified portfolio.
Treasury bonds and notes, and federally guaranteed mortgage-backed securities. Because of the high quality of their portfolios, government income funds tend to be less risky than other income funds, but to also offer less yield.
Securitization, including asset-backed and mortgage-backed securities
Structured finance, including collateralized loan obligations, collateralized debt obligations, and credit derivatives ...
Derivatives are hybrid investments, such as futures contracts, options, and mortgage-backed securities, whose value is based on the value of an underlying investment.
An estimate of the average life of a pool of mortgage-backed securities in relation to experience tables developed by the Federal Housing Administration.
FIA
See Futures Industry Association.
Bonds issued by government agencies (including government mortgage-backed securities) also are considered very safe investments. Their credit quality typically is one small step below that of Treasury bonds.
Over-the-counter options, such as those offered by government and mortgage-backed securities dealers.
Deal stock
Often used in risk arbitrage. Stock subject to merger or acquisition, either publicly announced or rumored.
Dwarfs definition :
Fannie Mae issued mortgage-backed securities pools that have an original maturity of 15 years.
FTSE 100, S&P 500 All In One ...
Buying and selling existing mortgage loans, which are often pooled and traded as mortgage-backed securities.
Secondary Offering
An IPO in which privately held shares in a corporation are sold to the public.
Builder's Bonds. Mortgage-backed securities issued by builders on mortgages accumulated from the sales of houses.
Income fund
Mutual fund that invests primarily in fixed-income securities, such as bonds, mortgage-backed securities and preferred shares. The fund's main objective is to generate income while preserving capital.
Markets in which mortgages or mortgage-backed securities are bought and sold. See Will My Mortgage Loan Be Sold?, and Do Secondary Mortgage Markets Help Borrowers?
Self-employed borrower ...
A financial security backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities. For investors, asset-backed securities are an alternative to investing in corporate debt.
collateralized mortgage obligation (CMO)
Specialized instrument designed to even-out the cash flow payments of mortgage-backed securities. CMOs are backed by pools of mortgages and are not riskless.
Collateralized Mortgage Obligations (CMOs): Bonds secured with GNMA, FNMA, and FHLMC mortgage-backed securities. Also known as REMICs.
Collateral trust bonds: Bonds secured by securities of another corporation.
GNMA is a wholly-owned U.S. government corporation that underwrites, or invests, in real estate loans and sells mortgage-backed securities to investors to raise monies to fund home and business loans.
Fannie Mae is a publicly floated, federal chartered, government-sponsored corporation that purchases mortgages from financial institutions, consolidates them and finally sells them on as mortgage-backed securities to investors through the open ...
" Fannie Mae: A privately owned corporation which provides a secondary market for federally guaranteed or insured mortgages as well as conventional mortgages. Its stock trades on the NYSE. It issues a number of different mortgage-backed securities.
the lower the interest rate, and vice-versa. Typically, the bottom tier is backed by high-risk junk bonds and pays whatever is left in the pool after interest on the higher-quality tiers is paid. See covered bond; mortgage-backed securities.
 See also: Banks, Expense, Values, Saving, Bills
|
