underlying mortgage

Underlying Mortgage

In a mortgage-backed security, a mortgage or a piece of a mortgage that gives value to the security. For example, if a bank sells the mortgage on Joe's house to another bank and that bank repackages it into an MBS, Joe's mortgage is one of the underlying mortgages for the security. See also: Underlying asset.

underlying mortgage

The first mortgage in a wraparound mortgage arrangement.
References in periodicals archive ?
By reducing the servicing cost of their underlying mortgage, often substantial due to high rates when the loan was originally made, a savvy board of directors can accomplish a number of desirable goals.
Losses on the underlying mortgage loans will be allocated to the Pooled Certificates prior to being allocated to the underlying senior certificates and will be allocated to the private certificates prior to being allocated to the Class B-1 certificates.
In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.
A $4 million underlying mortgage for a co-op apartment building on 39th Drive in Woodside, N.
The issue creates a senior/subordinated, multi-class mortgage pass-through structure whereby all principal distributions from the underlying mortgage loan will be applied to the senior most outstanding class of certificates until such class of certificates is retired.
The holder of the security has an undivided pro rata ownership interest in the underlying mortgage assets, or the trust or single purpose entity (or conduit) that issues the security has no liabilities unrelated to the issued securities.
In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Wells Fargo Bank Minnesota, N.
A $14 million first underlying mortgage for Hyde Park Gardens, a cooperative apartment complex in Kew Gardens, Queens.
Distribution of interest payments from the underlying mortgage loans, net of servicer and trustee fees, will be applied pro-rata to the Class S and Class A-1 certificates, and sequentially thereafter.
The DSRA requirement is equal to a minimum of 2% of mortgage loans outstanding (excluding loans covered by pool insurance or underlying mortgage certificates) plus bond proceeds available to purchase mortgage loans.
Winter & Company Commercial has placed a new $5 million underlying mortgage on a Prime 100 unit cooperative located on West 72nd Street near Riverside Drive on Manhattan's Upper West Side.
The aggregate outstanding principal balance on the underlying mortgage loans in the portfolio was approximately $110 million.