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By reducing the servicing cost of their underlying mortgage, often substantial due to high rates when the loan was originally made, a savvy board of directors can accomplish a number of desirable goals.
A $4 million underlying mortgage for a co-op apartment building on 39th Drive in Woodside, N.
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.
A $14 million first underlying mortgage for Hyde Park Gardens, a cooperative apartment complex in Kew Gardens, Queens.
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.
In sales, these buildings seem to achieve the price levels generally obtained only by condominium apartments, when the cooperative building's underlying mortgage is factored in.
In part, the difference may be explained by the allocable portion of the underlying mortgage associated with the cooperative unit.