Mortgage Pool

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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

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  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 ...
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