certificate backed by a pool of mortgage loans. A mortgage certificate, also known as a pass-through certificate, conveys a proportional interest in a pool of mortgage loans. Mortgage certificates are issued by (Fannie Mae), Freddie Mac and also by financial institutions or private mortgage conduits issuing mortgage certificates in their own name. Mortgage certificates are often pledged as security for Collateralized Mortgage Obligation (CMO) bonds.
security backed by mortgages. Investors receive payments out of the interest and principal on the underlying mortgages. Mortgage-backed certificates and the secondarymortgage market in which they are traded have helped keep mortgage money available for home financing.
security backed by mortgages. Such certificates are issued by the Federal Home Loan Mortgage Corporation, and the Federal National Mortgage Association. Others are guaranteed by the government national mortgage association. Investors receive payments out of the interest and principal on the underlying mortgages. Sometimes banks issue certificates backed by conventional mortgage, selling them to large institutional investors. The growth of mortgage-backed certificates and the secondary mortgage market in which they are traded has helped keep mortgage money available for home financing.
