Residential Mortgage-Backed Security (RMBS)

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Dictionary Says

Definition of 'Residential Mortgage-Backed Security (RMBS)'

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 Says

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.

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