Mortgage-Backed Securities

Agency MBS is a mortgage-backed security tied to agency-backed or agency-guaranteed mortgage pools.

Fannie Mae is a government-sponsored enterprise that supports a large part of the conventional conforming mortgage market.

Freddie Mac is a government-sponsored enterprise that supports a large part of the conventional conforming mortgage market.

Ginnie Mae is the government corporation tied to guarantees on certain mortgage-backed securities backed by government-loan programs.

A loan sale is the transfer of mortgage ownership or economic interest from the original lender to another party after origination.

A mortgage investor is the party that owns or economically benefits from a mortgage after origination.

Mortgage servicing rights are the rights to service a mortgage account and collect the related servicing fee income.

Mortgage-backed securities terms that explain the secondary mortgage market, loan sales, servicing rights, and the behind-the-scenes structure shaping many home loans.

A mortgage-backed security is an investment security backed by a pool of mortgage loans.

Non-agency MBS is a mortgage-backed security that does not rely on the standard agency-backed or agency-guaranteed framework.

A pass-through security is a mortgage-backed security structure that passes principal and interest cash flow from pooled mortgages through to investors.

The secondary mortgage market is the market where closed mortgages are sold, bought, pooled, or financed after origination.

Securitization is the process of pooling mortgage loans and turning them into securities that can be sold to investors.

The TBA market is the forward-trading market for many agency mortgage-backed securities before the exact underlying pools are specified.

A whole loan is an individual mortgage sold or held as a single loan asset rather than as part of a pooled security.