RMBS

RMBS
USA
Debt security on which payments of principal and interest are made to the holders from revenue generated by an underlying pool of residential mortgage loans. The underlying residential mortgages are pledged to the holders of the securities as collateral for the payment by the issuer of principal and interest on the securities. Residential mortgage-backed securities are most commonly issued by a special purpose entity as part of a securitization or structured finance transaction.
See also
commercial mortgage-backed security (CMBS)

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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