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Mortgage Backed Security Financial Glossary

What is it? A bond or other financial obligation secured by a pool of mortgage loans.

Finance Term Definition Added By: Tyler

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We hope you now understand the meaning of Mortgage Backed Security. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term Investor is A person who makes investments.

Financial Term Replacement Cost Coverage is Homeowners insurance that pays the cost to replace or repair the insured home or possessions, up to the policys set maximum. Provides more protection than actual cash value coverage.

Financial Term Mortgage pool is A collection of loans of similar nature which are sold as a unit in the secondary market or used to back a security which is then sold in the capital markets.

Financial Term Trust is A legal arrangement whereby control over property is transferred to a person or organization (the trustee) for the benefit of someone else (the beneficiary). Trusts are created for a variety of reasons, including tax savings and improved asset management.

Financial Term Cap is A maximum amount of charges. Example An ARM with a 5% rate cap could not adjust the interest rate by more than 5%.