- mortgage-backed security
A kind of investment backed by mortgage loans that have been packaged into pools in the secondary mortgage market. Payments on the mortgages generate the return on investment for the people who invest in these securities.Category: Bankruptcy, Foreclosure & Debt → ForeclosureCategory: Real Estate & Rental Property
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
- mortgage-backed security
Internationaldebt securities (debt security) (such as bonds or notes), which are issued by a special purpose vehicle in the course of a securitisation and backed, that is funded by and secured over, a portfolio of mortgage loans secured on commercial or residential property.+ mortgage-backed security (MBS)USAWhen the debt securities (debt security) issued by a special purpose vehicle in a securitization are secured by mortgage loans, they are known as mortgage-backed securities (MBSs). To optimize the risk profile of the securities and therefore maximize the range of investors to whom they can be sold, the securities are divided into different classes. These typically consist of several sequential tranches with differing priorities (priority) as to payment of principal and interest, and carrying differing interest rates. The more senior tranches have the right to priority of payment over more junior tranches, but the more junior tranches carry a higher rate of interest. More sophisticated transactions may include tranches of a combination of securities within the securitization structure (that is, tranches made up of a combination of separate tranches). Each tranche is generally given a different rating by a credit rating agency, based in part on the relative priority of payment.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
Look at other dictionaries:
mortgage-backed security — ( MBS) or mortgage backed bond Securities composed of, or collateralized by, loans that are themselves collateralized by liens on real property. MBSs can be categorized into two major types. Pass through pools are mortgage backed bonds created by … Financial and business terms
mortgage backed security — International mortgage backed securities, Also referred to as MBS. debt securities (debt security) (such as bonds or notes), which are issued by a special purpose vehicle in the course of a securitisation and … Law dictionary
Mortgage-backed security — En finance, un mortgage backed security (MBS) ou un titre hypothécaire est une valeur immobilière adossée à des actifs. Il s agit d une forme d asset backed security. Sa valeur de revente est garantie à la fois par un ensemble de portions d… … Wikipédia en Français
mortgage–backed security — see security Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
Mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security … Wikipedia
Mortgage Backed Security — Mortgage Backed Securities sind besicherte Anleihen, also durch Vermögenswerte gesicherte Wertpapiere, deren Bargeldflüsse durch die Zins und Tilgungszahlungen eines Pools von grundpfandrechtlich gesicherten Forderungen getragen werden. Im… … Deutsch Wikipedia
mortgage-backed security — noun an asset backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans. See Also: MBS … Wiktionary
mortgage-backed security — noun 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… … Useful english dictionary
mortgage-backed security — A security in which cash flows derive from an underlying pool of mortgages. They are very widely used in the USA … Big dictionary of business and management
Mortgage-Backed Security (MBS) — A type of asset backed security that is secured by a mortgage or collection of mortgages. These securities must also be grouped in one of the top two ratings as determined by a accredited credit rating agency, and usually pay periodic payments… … Investment dictionary