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?

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center