Mortgage Pool


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.

BREAKING DOWN '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.

  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. Pool Factor

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

    The rate on a securitized asset pool - such as a mortgage-backed ...
  6. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
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  1. What is securitization?

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