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

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  3. Pass-Through Rate

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  4. Ginnie Mae - Government National ...

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  5. Mortgage-Backed Security (MBS)

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