Mortgage-Backed Securities
/ˈmɔːrɡɪdʒ bæktt ˈsɛkjʊrɪtiz/
Definitions
- (n.) Financial instruments secured by a pool of mortgage loans, representing claims on the cash flows from the underlying mortgages.
Investors purchase mortgage-backed securities to gain exposure to the mortgage market without owning individual loans directly.
- (n.) Securities created by pooling together various mortgages and then selling interests in that pool to investors.
Mortgage-backed securities played a central role in the 2008 financial crisis due to their complexity and risk.
Forms
- mortgage-backed securities
- mortgage-backed security
Related terms
See also
Commentary
The term commonly appears in financial and securities regulation contexts; drafting should distinguish these from other asset-backed securities due to their specific collateral. Singular and plural forms do not differ in definition.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.