Mortgage Pool

AAA

DEFINITION of 'Mortgage Pool'

A group of mortgages held in trust as collateral for the issuance of a mortgage-backed security. Some mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae are known as "pools" themselves. These are the simplest form of mortgage-backed security. They are also known as "pass-throughs" and trade in the to-be-announced (TBA) forward market.

INVESTOPEDIA EXPLAINS 'Mortgage Pool'

Pass-throughs or pools are comprised of mortgages with close to the same maturity and interest rate. A pool of mortgages that backs a more complex mortgage-backed security or CDO, however, might consist of mortgages of more varying interest rates and characteristics.

RELATED TERMS
  1. Stripped MBS

    A trust comprised of mortgage-backed securities which are split ...
  2. Jumbo Pool

    A pass-through Ginnie Mae II mortgage-backed security that is ...
  3. Weighted Average Remaining Term ...

    The remaining life of an asset-backed security or a mortgage-backed ...
  4. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
  5. Pass-Through Rate

    The rate on a securitized asset pool - such as a mortgage-backed ...
  6. Pool Factor

    The percentage of the original principal that is left to be distributed ...
Related Articles
  1. Profit From Mortgage Debt With MBS
    Bonds & Fixed Income

    Profit From Mortgage Debt With MBS

  2. The Bond Market: A Look Back
    Mutual Funds & ETFs

    The Bond Market: A Look Back

  3. Asset Allocation In A Bond Portfolio
    Bonds & Fixed Income

    Asset Allocation In A Bond Portfolio

  4. Why Are Mortgage Rates Increasing?
    Personal Finance

    Why Are Mortgage Rates Increasing?

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center