Whole loan


Also found in: Acronyms.

Whole loan

A term that distinguishes an investment representing an original mortgage loan from a loan representing a participation with one or more lenders.

Whole Loan

Describing a collateralized mortgage obligation that is too large to be issued or guaranteed by Ginnie Mae, Freddie Mac, or Fannie Mae. That is, a whole loan CMO represents jumbo mortgages, which can be riskier than other mortgages. As a result, whole loan CMOs pay a higher yield than those issued by a government agency; because of the lack of a government guarantee on coupon payments, they have a higher exposure to prepayment risk.
References in periodicals archive ?
Whole Loan Solutions delivers advisory services to the secondary residential mortgage market.
This is a question that will need to be answered by the financial instruments project; however, it would seem appropriate for the seller to establish as an obligation the fair value of the credit guarantee and/or the interest rate swap issued in the whole loan sale.
Carlton has been selling loans for banks since 1991 and has closed well over $20 billion of whole loans and mezzanine loans.
Given the amount of oversight in lending today, defaults on whole loans should be far lower than the default rate was in 1990-1993.