Jumbo Pool

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DEFINITION of 'Jumbo Pool'

A pass-through Ginnie Mae II mortgage-backed security that is collateralized by multiple-issuer pools. These pools combine loans with similar characteristics and are generally larger than single-issuer pools. The mortgages contained in jumbo pools are more diverse on a geographical basis than single-issuer pools.

INVESTOPEDIA EXPLAINS 'Jumbo Pool'

Registered holders of Ginnie Mae II securities receive aggregate principal and interest payments from a central paying agent. Interest rates on mortgage loans contained within jumbo pools may vary within one percentage point. Because these pools are backed by multiple issuers, they are typically considered a safer form of mortgage-backed security investment.

RELATED TERMS
  1. Mortgage Pool

    A group of mortgages held in trust as collateral for the issuance ...
  2. Pool Factor

    The percentage of the original principal that is left to be distributed ...
  3. Pass-Through Rate

    The rate on a securitized asset pool - such as a mortgage-backed ...
  4. Ginnie Mae - Government National ...

    A U.S. government corporation within the U.S. Department of Housing ...
  5. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
  6. Real Estate

    Land plus anything on it, including buildings and natural resources.
RELATED FAQS
  1. What is a Ginnie Mae security?

    A Ginnie Mae, or Government National Mortgage Association security, functions similarly to the process of lending someone ...
  2. What is a tranche?

    "Tranche" is actually a French word meaning "slice" or "portion". In the world of investing, it is used to describe a security ...
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