Mortgage-Backed Securities

Federal government corporation that guarantees timely principal and interest on eligible mortgage-backed securities.

Promise supporting timely MBS principal and interest, with materially different federal backing for Ginnie Mae and the Enterprises.

Principal-weighted estimate of how long an MBS or mortgage investment remains outstanding under stated payment assumptions.

Loan-specific secondary-market commitment requiring delivery if the identified mortgage closes and remains eligible.

Structured MBS that redirects mortgage cash flows among tranches with different payment timing and risk characteristics.

Loan document package that supports ownership, enforceability, and delivery of mortgage collateral.

Annualized mortgage-pool prepayment rate used to compare assumed or observed payoff speeds.

Structural or contractual support that absorbs or redirects mortgage credit losses before they reach specified security classes.

Theoretical agency MBS coupon estimated to trade near par from current prices of neighboring coupons.

Paired TBA transactions that sell an agency MBS position for one settlement month and buy a similar position for a later month.

Residual mortgage interest cash flow remaining after specified security distributions, fees, expenses, and losses.

MBS timing risk created when slower prepayments keep mortgage principal outstanding longer than expected.

Fee charged for an Enterprise MBS credit guarantee and reflected indirectly in conforming mortgage pricing.

Post-closing process for submitting an eligible mortgage's data and documents into an investor, agency, or MBS execution.

Secondary-market agreement requiring a lender to deliver an eligible product amount by a specified date or resolve the shortfall.

Transaction party overseeing specified servicing, remittance, and reporting functions across a securitized mortgage pool.

An investment security backed by a pool of mortgage loans.

Stated annual rate used to calculate investor interest on a mortgage-backed security.

Entity or issuing structure that creates MBS backed by accepted mortgage collateral or cash-flow rights.

Market value quoted for a mortgage-backed security, typically expressed per $100 of principal.

Legal vehicle or trust estate holding defined mortgage assets and supporting MBS investor interests.

Party performing limited trust-administration duties assigned by an MBS transaction's governing documents.

Group of mortgage applications, locked loans, or closed loans moving toward funding and investor delivery.

Group of mortgage loans assembled to support a mortgage-backed security or investor transaction.

Transaction that closes an open TBA or delivery position with an offsetting trade instead of security delivery.

Single-class MBS structure distributing investors' pro-rata shares of pooled principal and interest cash flow.

Stated annual security rate used to calculate investor interest after applicable servicing and guaranty deductions.

Secondary-market position used to offset market-value risk in a lender's expected rate-locked mortgage production.

Ratio showing how much of an MBS pool's original principal remains after scheduled payments and prepayments.

Risk that mortgage principal returns sooner than assumed, shortening investor cash flow and creating reinvestment risk.

Transaction agreement defining how specified mortgage assets are transferred, serviced, administered, and distributed to security holders.

Benchmark that expresses mortgage prepayment speed as a percentage of a standard seasoning-based CPR path.

Federal tax election for a mortgage securitization vehicle holding qualified mortgages and issuing regular and residual interests.

Approved mortgage counterparty that sells loans and services accounts under an investor or agency program.

MBS credit structure in which subordinate classes protect senior classes by taking specified losses first.

Loan-sale execution in which the seller keeps the mortgage servicing rights after transferring the loan asset.

Monthly mortgage-pool prepayment rate used to translate annual CPR assumptions into one-month cash-flow behavior.

Identified MBS pool traded or analyzed for known collateral traits rather than only generic TBA terms.

Settlement step in which a to-be-announced agency MBS trade is completed with eligible mortgage pools.

A class within a structured mortgage security with its own payment priority, timing, coupon, or risk profile.

Current-balance-weighted average of the mortgage note rates in a pool.

Current-balance-weighted age in months of loans remaining in a mortgage pool.

Current-balance-weighted number of scheduled months remaining across loans in a mortgage pool.

Party holding a whole mortgage or an ownership, beneficial, or economic interest in mortgage cash flows after origination.

Transfer of a closed mortgage's legal ownership or economic interest to another party.

Contractual rights and obligations to service mortgages and receive the associated servicing compensation.

The market where closed mortgages are sold, financed, pooled, or securitized after origination.

Loan-sale execution in which the seller transfers rather than retains the mortgage servicing rights.

Mortgage-backed security guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae under distinct U.S. housing-finance frameworks.

Terms covering the secondary mortgage market, securitization, agency pools, and servicing rights.

Mortgage-backed security without a Fannie Mae, Freddie Mac, or Ginnie Mae guaranty.

Process of transferring mortgage assets into an issuing structure that creates securities backed by their cash flow.

The forward market where many agency MBS trades occur before exact pools are named.

A complete mortgage-loan asset held or sold directly rather than as an interest in a mortgage-backed security.