Search results
Results from the WOW.Com Content Network
A mortgage bond is a bond backed by a pool of mortgages on a real estate asset such as a house. More generally, bonds which are secured by the pledge of specific assets are called mortgage bonds. Mortgage bonds can pay interest in either monthly, quarterly or semiannual periods. The prevalence of mortgage bonds is commonly credited to Mike Vranos.
Residential mortgage-backed security (RMBS) are a type of mortgage-backed security backed by residential real estate mortgages. [1]Bonds securitizing mortgages are usually treated as a separate class, making reference to the general package of financial agreements that typically represents cash yields that are paid to investors and that are supported by cash payments received from homeowners ...
A mortgage-backed security is a type of financial asset, somewhat like a bond (or a bond fund). It is created out of a portfolio, or collection, of residential mortgages .
Moody's Investors Service, one of the two biggest rating agencies, could earn "as much as $250,000 to rate a mortgage pool with $350 million in assets, versus the $50,000 in fees generated when rating a municipal bond of a similar size." In 2006, revenues from Moody's structured finance division "accounted for fully 44%" of all Moody's sales.
For example, a bank may originate a loan but sell it in the secondary market while retaining the right to service the mortgage. As a loan originator, the bank underwrites, processes, funds and ...
For example, a $300,000 30 year mortgage with an interest rate of 6.5% could be split into 300 1000-dollar bonds. These bonds would have a 30-year amortization, and an interest rate of 6.00% for example (with the remaining 0.50% going to the servicing company to send out the monthly bills and perform servicing work).
Mortgage-related muddles have been taking up a lot of headline space recently as banks take it on the chin about their laxity in upholding a $25 billion foreclosure settlement, and mortgage-mess ...
REMICs are investment vehicles that hold commercial and residential mortgages in trust and issue securities representing an undivided interest in these mortgages. A REMIC assembles mortgages into pools and issues pass-through certificates, multiclass bonds similar to a collateralized mortgage obligation (CMO), or other securities to investors in the secondary mortgage market.