Category: M

Over the life of the mortgage principal and interest amounts are shown by payment date in this type of document.

Investor’s income generating security from the principal and interest payments on the underlying mortgage pool. Mortgage derivate securities are both mortgage backed and mortgaged backed pass-through.

A lien on the bond issuer’s assets, payable from the issuer’s income secures this type of bond. These bonds offer a more predictable maturity with call protection against the bond’s early redemption, unlike a mortgage backed pass-through security, which conveys an ownership right.

a term that applies to investment that are risky and based on the direction of future interest rates

Debt instrument with ownership right to each mortgage’s fractional part of its pool of mortgages backing the security. These are considered ‘investment grade’ instruments, with paid income generated by the underlying mortgage’s principle and interest payments. It is a type of mortgage derivative, unlike unsecured securities.

Length of a mortgage, typically in years, unless some principal pre-payment occurs. For an asset that is not property, it can be the number of years until an investor receives the initial present value from a security backed by the mortgage. In this case the longer the mortgage duration is, the more the secured asset value declines as interest rates rise, and, conversely, as interest rates fall the more the asset’s value rises.

Debt instrument with no ownership right to each mortgage’s fractional part of its pool of mortgages backing the security. These are considered ‘investment grade’ instruments, with paid income generated by the underlying mortgage’s principle and interest payments. It is a type of mortgage derivative, Unlike unsecured securities. Also known as mortgage backed certificate.

the term given to the lien recognised by a court of equity where no legal mortgage exist.

US term for an entity that originates mortgages and sells them to investors in the secondary mortgage market as its primary function. A mortgage banker derives income principally from origination and service fees, as does a merchant banker.

Real estate finance professionals organized as a national organization. The association’s professional members include mortgage brokers and their companies, as well as life insurance companies, banks, and mortgage lenders. Headquartered in Washington, D.C. It promotes ethical and fair lending practices.