Mortgage-Backed Certificate

Mortgage-backed Certificate - Mortgage-backed Certificate is a certificated backed by a pool of mortgage loans. A mortgage certificate, a pass-through certificate, conveys a proportional interest in a pool of mortgage loans. The mortgage certificates issued by the Fannie Mae, Freddie Mac, and also by financial institutions or private mortgage conduits issuing mortgage certificates in their own name. The mortgage certificates are security for Collateralized Mortgage Obligation (CMO) bonds. The Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association issues the mortgage certificates. Investors receive expenditure out of the interest and principal on the underlying mortgages. The growth of mortgage-backed certificates secured.