Definitions for mortgage-backed security
mort·gage-backed se·cu·ri·ty

Princeton's WordNetRate this definition:0.0 / 0 votes

1. mortgage-backed securitynoun

   a security created when a group of mortgages are gathered together and bonds are sold to other institutions or the public; investors receive a portion of the interest payments on the mortgages as well as the principal payments; usually guaranteed by the government

WiktionaryRate this definition:0.0 / 0 votes

1. mortgage-backed securitynoun

   an asset-backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans.

WikipediaRate this definition:0.0 / 0 votes

1. Mortgage-backed security

   A mortgage-backed security (MBS) is a type of asset-backed security (an 'instrument') which is secured by a mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals (a government agency or investment bank) that securitizes, or packages, the loans together into a security that investors can buy. Bonds securitizing mortgages are usually treated as a separate class, termed residential; another class is commercial, depending on whether the underlying asset is mortgages owned by borrowers or assets for commercial purposes ranging from office space to multi-dwelling buildings. The structure of the MBS may be known as "pass-through", where the interest and principal payments from the borrower or homebuyer pass through it to the MBS holder, or it may be more complex, made up of a pool of other MBSs. Other types of MBS include collateralized mortgage obligations (CMOs, often structured as real estate mortgage investment conduits) and collateralized debt obligations (CDOs).A mortgage bond is a bond backed by a pool of mortgages on a real estate asset such as a house. More generally, bonds which are secured by the pledge of specific assets are called mortgage bonds. Mortgage bonds can pay interest in either monthly, quarterly or semiannual periods. The prevalence of mortgage bonds is commonly credited to Mike Vranos. The shares of subprime MBSs issued by various structures, such as CMOs, are not identical but rather issued as tranches (French for "slices"), each with a different level of priority in the debt repayment stream, giving them different levels of risk and reward. Tranches of an MBS—especially the lower-priority, higher-interest tranches—are/were often further repackaged and resold as collateralized debt obligations. These subprime MBSs issued by investment banks were a major issue in the subprime mortgage crisis of 2006–2008. The total face value of an MBS decreases over time, because like mortgages, and unlike bonds, and most other fixed-income securities, the principal in an MBS is not paid back as a single payment to the bond holder at maturity but rather is paid along with the interest in each periodic payment (monthly, quarterly, etc.). This decrease in face value is measured by the MBS's "factor", the percentage of the original "face" that remains to be repaid. In the United States, MBSs may be issued by structures set up by government-sponsored enterprises like Fannie Mae or Freddie Mac, or they can be "private-label", issued by structures set up by investment banks.

ChatGPTRate this definition:0.0 / 0 votes

1. mortgage-backed security

   A mortgage-backed security (MBS) is a type of asset-backed security that is secured by a collection of mortgages. These mortgages are bundled together by financial institutions and sold to investors. The regular interest and principal payments made by borrowers on the underlying mortgages generate the return for the MBS investors. MBS can be further categorized into residential and commercial mortgage-backed securities, depending on the underlying assets. MBS plays an important role in the housing market and finance sector by providing liquidity to mortgage lenders.

WikidataRate this definition:5.0 / 1 vote

1. Mortgage-backed security

   A mortgage-backed security is a type of asset-backed security that is secured by a mortgage, or more commonly a collection of sometimes hundreds of mortgages. The mortgages are sold to a financial institution that "securitizes" or packages the loans together into a security that can be sold to investors. The mortgages of a MBS may be residential or commercial, in the US they may issued by Government-sponsored enterprises like Fannie Mae or "private-label", issued by investment banks. The MBS's structure maybe known as "pass-through" or it may be more complex, made up of a pool of not mortgages, other MBSs. The shares of subprime MBSs issued by investment banks are not identical but issued as tranches, with different level of priority in the debt repayment stream, giving them different levels of risk and reward. Tranches — especially the lower priority, higher interest tranches — of a MBS are/were often further repackaged and sold again as collateralized debt obligations. These subprime MBSs issued by investment banks were a major issue of the Subprime mortgage crisis of 2006-8.

Matched Categories

1. • Security

How to pronounce mortgage-backed security?

1. Alex

   US English

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   Mark

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   Daniel

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   Australian

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   Neerja

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How to say mortgage-backed security in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of mortgage-backed security in Chaldean Numerology is: 8

2. Pythagorean Numerology

   The numerical value of mortgage-backed security in Pythagorean Numerology is: 7

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=mortgage-backed security
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Mortgage-backed_Security
3. ^ Wikipedia
   https://en.wikipedia.org/wiki/Mortgage-backed_Security
4. ^ ChatGPT
   https://chat.openai.com
5. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=mortgage-backed security