Residential Mortgage-Backed Security (RMBS)
What Does Residential Mortgage-Backed Security (RMBS) Mean?
A type of security whose cash flows come from residential debt such as mortgages, home-equity loans and subprime mortgages. This is a type of mortgage-backed securities that focuses on residential instead of commercial debt.
Investopedia explains Residential Mortgage-Backed Security (RMBS)
Holders of an RMBS receive interest and principal payments that come from the holders of the residential debt. The RMBS comprises a large amount of pooled residential mortgages.
