| CMO
(fixed & variable) |
A security
backed by a pool of pass-throughs, structured so that
there are several classes of bondholders with varying
maturities, called tranches. The principal
payments from the underlying pools of pass-through
securities are used to retire the bonds on a priority
basis as specified in the prospectus. |
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| CMO
Derivative |
A financial
security, whose value is derived in part from the value
and characteristics of another security. |
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| FHLMC |
A private
corporation authorized by Congress which sells
participation certificates and collateralized mortgage
obligations backed by pools of mortgage loans. |
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| FNMA |
Created by
Congress to support the secondary mortgage market.
A private corporation, it buys and sells residential
mortgages insured by FHA or guaranteed by the VA.
FNMA also issues mortgage-backed securities backed by
conventional mortgages. |
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| GNMA |
Nicknamed
Ginnie Mae, a government-owned corporation that is an
agency of the Department of Housing and Urban
Development. GNMAs are pools of residential
mortgages. GNMA guarantees, with the full faith
and credit of the US Government, that investors will
receive full and timely principal and interest payments
even if mortgages in the pool are not paid on a timely
basis. |
