What Are Mortgage Allocations? Mortgage allocations are a step in the settlement of to-be-announced mortgage-backed securities (MBS) that are traded in the secondary market. At assignment, the seller provides the buyer with the precise details of the loans that make up the underlying pool of the MBS. Key Takeaways Mortgage allocation refers to a step in
What is a Mortgage Bond? A mortgage bond is secured by a mortgage, or a pool of mortgages, that are typically backed by real estate holdings and real property, such as equipment. Key Takeaways A mortgage bond is a bond backed by real estate holdings or real property.In the event of a default situation, mortgage
What Is a Mortgage Equity Withdrawal A mortgage equity withdrawal is a piece of economic data measuring the net amount of cash equity that consumers withdraw from their homes through home equity loans or lines of credit and cash-out refinances. Mortgage equity withdrawals are a relevant economic indicator in the prediction of consumer spending and
What Is a Mortgage Originator? A mortgage originator is an institution or individual that works with a borrower to complete a a home loan transaction. A mortgage originator is the original mortgage lender and can be either a mortgage broker or a mortgage banker. Mortgage originators are part of the primary mortgage market and must work
What Is a Mortgage Par Rate? A mortgage par rate is the standard interest rate calculated by an underwriter and assigned to a borrower for a specific lending product. A mortgage par rate is the interest rate a lender will charge a borrower without adjustments for lender credits or discount points. If the lender adjusts
What Is a Mortgage Pipeline? A mortgage pipeline refers to mortgage loans that are locked in with a mortgage originator by borrowers, mortgage brokers, or other lenders. A loan stays in an originator’s pipeline from the time it is locked until it falls out, is sold into the secondary mortgage market, or is put into
What Is a Mortgage Rate Lock Float Down? The term mortgage rate lock float down refers to a financing option that locks in the interest rate on a mortgage with the option to reduce it if market rates fall during the lock period. A typical rate lock provides a borrower with security against an increase
What Is a Mortgage-Backed Revenue Bond? A mortgage-backed revenue bond is a debt security, usually issued by a municipality, that is used to fund low-rate mortgages. The coupon payments of the bond come from the interest payments on the mortgages that the bonds are used to fund. Key Takeaways A mortgage-backed revenue bond is a
What Is a Money Market Account (MMA)? The term money market account (MMA) refers to an interest-bearing account at a bank or credit union. Sometimes referred to as money market deposit accounts (MMDA), money market accounts have some features that are not found in other types of accounts. Most money market accounts pay a higher
What Is a Money Market Fund? A money market fund is a kind of mutual fund that invests in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries). Money market funds are intended to offer investors high liquidity with a very
