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 ?
Fitch views the presence of a mortgage servicer (Wells Fargo & Company, Issuer Default Rating A+/Outlook Stable) pursuant to the securitization of the underlying mortgage loan on the mall project as a favorable credit factor.
The underlying mortgage is secured by a retail condominium located on North Rush Street in the prestigious Gold Coast district of Downtown Chicago.
Generally, investors in a CMBS prefer that underlying mortgage notes are not unexpectedly paid off, as this can affect the value of the CMBS and leave investors open to pricing manipulation.
Rather than reopening the underlying mortgage, the cases were filed as new civil actions.
The firm said it believes this credit reserve appropriately factors in remaining uncertainties regarding underlying mortgage performance and the potential impact on future cash flows.
In a ruling, US district judge, Jed Rakoff, has ordered Flagstar Bancorp Inc (NYSE: FBC) to pay USD90m to Assured Guaranty Ltd (NYSE: AGO) in a dispute related to loans underlying mortgage backed securities valued at USD900m
It also could be argued that, in most cases, its credit risk is less than the underlying mortgage (absent repurchase risk).
So if a buyer assumed an underlying mortgage from the homeowner, or paid transfer taxes that are usually paid by the seller, that amount would now appear as part of the total price.
Less than 5 percent of the underlying mortgage pool was expected to go bad, when a Moody's analyst in 2006 first rated the risk of the security.
"Fitch published a note on September 18 in which they confirmed that the underlying mortgage collateral of the Granite trust still remains strong.
(27) The senior mortgage loan is typically secured by income-producing real estate owned by the underlying mortgage borrower.
"In addition, the BBA indicated that seasonally-adjusted underlying mortgage lending amounted to pounds 5.6 billion in January.