Mortgage-Backed Securities

Credit-support feature behind certain agency MBS structures that helps make investor cash flows more predictable.

MBS timing measure estimating when principal is expected to be returned to investors.

Secondary-market commitment where a lender generally delivers a specific closed loan if it closes.

Structured mortgage security that divides mortgage cash flows into classes with different payment behavior.

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

Annualized measure of how quickly mortgage pool principal is expected to prepay.

Support feature intended to reduce credit risk to certain mortgage-backed security investors.

Market-implied mortgage-backed security coupon area used as a reference point for current production.

TBA-market transaction that sells one agency MBS position and buys a similar later-settling position.

Extra interest cash flow in an MBS structure that may support fees, losses, or investor protection.

MBS risk that mortgage loans remain outstanding longer than investors expected.

Fee associated with agency-style mortgage guarantees that helps compensate for credit risk and guarantee support.

Post-closing step where a mortgage is delivered to an investor, agency, or secondary-market execution.

Secondary-market commitment with a firmer lender obligation to deliver mortgage loans or securities.

Entity that oversees servicing administration for loans in a securitized mortgage structure.

An investment security backed by a pool of mortgage loans.

Stated cash-flow rate on a mortgage-backed security, distinct from the borrower's mortgage rate.

Entity responsible for issuing mortgage-backed securities backed by a pool of mortgage collateral.

Market price of a mortgage-backed security, one input behind many mortgage rate sheets.

Legal trust or issuing vehicle that holds mortgage collateral for a mortgage-backed security.

Trustee party with document-defined responsibilities in a mortgage-backed securities transaction.

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.

Offsetting a TBA or delivery position instead of delivering the expected mortgage security.

An MBS structure that passes pooled principal and interest cash flow through to investors.

Rate of mortgage cash flow passed through to investors in a pass-through mortgage security.

Secondary-market position used by a lender to manage rate-lock risk in its mortgage pipeline.

MBS measure showing how much of a mortgage pool's original principal remains outstanding.

MBS risk that mortgage borrowers repay sooner than expected, changing investor cash flow.

Document governing how pooled mortgage loans are serviced and administered for an MBS transaction.

Market convention for expressing mortgage prepayment speed relative to a standard benchmark.

Tax-oriented securitization structure commonly used for mortgage-backed securities.

Mortgage company approved to sell loans into an investor channel and service loans under that channel's rules.

MBS structure that allocates losses to subordinate classes before senior investor classes.

Loan-sale structure where the seller keeps servicing rights after selling the mortgage asset.

Monthly measure of mortgage pool principal that prepays ahead of schedule.

Identified mortgage pool named for delivery or analysis instead of traded only through a generic TBA description.

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

Class or slice of a structured mortgage security with its own cash-flow priority or timing behavior.

Average note-rate measure for loans in a mortgage pool, weighted by remaining balance.

Balance-weighted measure of how long loans in a mortgage pool have been outstanding.

Balance-weighted measure of remaining scheduled maturity across loans in a mortgage pool.

The party that owns or economically benefits from a mortgage after origination.

The transfer of mortgage ownership or economic interest after origination.

The contractual rights to service mortgage accounts and collect servicing income.

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

A loan-sale setup where the original seller does not keep servicing, so ownership and servicing are positioned to move together.

A mortgage-backed security issued or guaranteed through the main agency framework.

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

A mortgage-backed security outside the main agency-backed or agency-guaranteed framework.

The process of pooling mortgage loans and turning them into tradable securities.

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

An individual mortgage sold or held as a single asset instead of in a pooled security.

A government-sponsored enterprise that supports much of the conventional conforming mortgage market.

A government-sponsored enterprise that supports much of the conventional conforming mortgage market.

The government corporation that guarantees certain mortgage-backed securities tied to government-loan programs.