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Terms Beginning with P
       
       
 

Purchased Mortgage Loan

Financial Term


A Purchased Mortgage Loan is a type of mortgage that has been sold by the original lender or holder to another party, such as a bank or investor. These loans are commonly sold to gain liquidity or reduce risk exposure for the original lender or holder.

In the financial industry, Purchased Mortgage Loans are often bundled together into pools and sold to investors as Mortgage-Backed Securities (MBS). MBS are securities that represent an ownership interest in a pool of mortgage loans, with the payments received from the underlying mortgages passed through to investors.

Purchased Mortgage Loans can also be used as collateral for repurchase agreements (repos) or for borrowing from the Federal Reserve.

Overall, the sale and purchase of mortgage loans is a common practice in the financial industry and helps to provide liquidity and risk management for lenders and investors.


   
     

Purchased Mortgage Loan

Financial Term


A Purchased Mortgage Loan is a type of mortgage that has been sold by the original lender or holder to another party, such as a bank or investor. These loans are commonly sold to gain liquidity or reduce risk exposure for the original lender or holder.

In the financial industry, Purchased Mortgage Loans are often bundled together into pools and sold to investors as Mortgage-Backed Securities (MBS). MBS are securities that represent an ownership interest in a pool of mortgage loans, with the payments received from the underlying mortgages passed through to investors.

Purchased Mortgage Loans can also be used as collateral for repurchase agreements (repos) or for borrowing from the Federal Reserve.

Overall, the sale and purchase of mortgage loans is a common practice in the financial industry and helps to provide liquidity and risk management for lenders and investors.


Related Financial Terms


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