Mortgage Pool

What Does Mortgage Pool Mean?
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. However, a pool of mortgages that backs a more complex mortgage-backed security or CDO might consist of mortgages of more varying interest rates and characteristics.

Filed Under: Bonds, Fixed Income

Related Terms

Mortgage-Backed Security
Pass-Through Rate
Pool Factor
More Related Terms

Related Links

Why Are Mortgage Rates Increasing? - Learn how the secondary mortgage market and investor demand affect the cost of home ownership.
Profit From Mortgage Debt With MBS - Mortgage-backed securities can offer monthly income, a fixed interest rate and even government backing.
The Bond Market: A Look Back - Find out how fixed-income investments evolved in the past century and what it means today.
Asset Allocation In A Bond Portfolio - An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why!
What is securitization?

Rate this Term: Your Rating: Overall Rating: Vote Now!