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Securitized Mortgage |
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Securitized Mortgage A mortgage that is packaged into a mortgage-backed security (MBS). One mortgage may be securitized over several MBSs, and each MBS contains many securitized mortgages. A securitized mortgage gives the holder of the security, rather than the bank originating the loan, the right a claim on the principal and interest payments on that mortgage. Mortgages are securitized to remove them from a bank's balance sheet (which reduces risk) and to improve its cash flow. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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