Mortgage backed security

Mortgage backed security,

Definition of Mortgage backed security:

  1. Debt instrument secured by a mortgage or a pool of mortgages (but not conveying a right of ownership to the underlying mortgage). Unlike unsecured securities, they are considered investment grade, and are paid out of the income generated by principle and interest payments on the underlying mortgage. It is a type of mortgage derivative. Also called mortgage backed certificate.

Meaning of Mortgage backed security & Mortgage backed security Definition