mortgage-backed revenue bond(redirected from Mortgage Backed Revenue)
Mortgage-Backed Revenue Bond
A municipal bond that is issued in order to finance low-cost mortgages for residents of the municipality. The bonds are guaranteed by the payments made on these mortgages. In many ways, they are similar to mortgage-backed securities, but they are issued by a local government instead of private entity. A mortgage-backed revenue bond is also called a housing bond.
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mortgage-backed revenue bond
A municipal bond, the proceeds of which are used to provide funds to financial institutions for making mortgage loans at relatively low interest rates. Interest and principal on the bond are backed by borrower payments on the mortgages. As with other revenue bonds, the quality varies significantly among different issues of these securities. Also called housing bond.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.