mortgage pool

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Mortgage pool

A group of mortgages with similar class, interest rate, and maturity characteristics.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Mortgage Pool

A group of mortgages that may be placed into the same investment vehicle, especially a mortgage-backed security. The mortgage pool is collected and then divided up into smaller pieces, each containing the same proportion of the individual mortgages; the pieces are then sold as securities. Generally speaking, the mortgages in a mortgage pool have the same characteristics, such as similar maturities.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

mortgage pool

A combination of similar mortgages used as collateral for loans or for participation certificates sold to investors. Also called pool.
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.
References in periodicals archive ?
Not so far in the future, mortgage pools will have the same level of information, transparency and exchange speeds as stocks do today.
Along with increased appetite for performing mortgage pools, PwC is seeing increased interest in bundles of performing corporate loans, particularly in the BB to B- risk families.
The VAR model interpreting the housing market in this paper will use housing starts to represent residential investment, the federal funds rate to represent monetary policy, mortgage pools backed by government sponsored enterprises (GSE-backed mortgage pools) to represent government influence on subprime lending, personal consumption expenditures as a proxy for demand, and a dummy variable accounting for changes in the regulatory environment in the mid-1990s that encouraged further subprime lending.
increased the risk in its portfolio by purchasing lower tranche MBS, which would absorb any losses in the mortgage pools before the higher tranches and so had a higher risk and paid a higher yield."
The industry's bankruptcy is generally attributed to mortgage pools (the website defines mortgage pools as "a group of related financial instruments, such as mortgages, combined for resale to investors on a secondary market").
That's the only diversification you could really build in the mortgage pools. Once you go to a CMO with different tranches and throwing all the revenue into a basket, it allowed diversification through the tranches.
Generally, entities that do not qualify as REMICs, but that issue multiple maturity debt obligations, the payments on which are related to payments on the mortgages and other obligations held by the entity, are classified as Taxable Mortgage Pools (TMPs).
And in the coming weeks, we will announce other Recovery Act programs, including an expansion of our microloan program, a loan that uses the 504 loan program to refinance debt, and a guarantee program to stimulate sales of 504 first mortgage pools in the secondary market.
Were it not for the $156 billion increase in Agency and GSE-backed mortgage pools, there would indeed have been a sizeable contraction in overall residential mortgage debt during Q2.
Add about $40 billion in defaults by borrowers who have conventional mortgages and mortgage pools and the total loss may reach about $250 billion or less than 2% of total bank credit.

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