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Reverse Mortgage

A mortgage that is collateralized with a mortgagor's home equity, while a mortgagee (a lender/ lending institution) makes regular payment...

Mortgagor

The borrower in a mortgage, i.e., the party to a mortgage loan that is extended credit by the mortgagee (the...

Mortgagee

The lender in a mortgage, i.e., the party to a mortgage loan that extends credit to another party, the borrower...

Negative Amortization

A situation (amortization that has a negative sign and effect) that arises when a mortgagor (a borrower) has an increasing...

Gestation Repo

A reverse repurchase (repo) agreement by which a mortgage firm sells federally guaranteed mortgage-backed securities (MBSs) to a securities dealer...

CMO

It stands for collateralized mortgage obligation; a structured product that is backed and collateralized by a pool of mortgage loans...

Collateralized Mortgage Obligation

A structured product that is backed and collateralized by a pool of mortgage loans and similar debt arrangements. It is...

Non-Sticky Jump Bond

A collateralized mortgage obligation that may change priority to receive principal if certain conditions are present. The principal paydown will...

IO Fixed-Rate Mortgage

A mortgage loan (fixed-rate mortgage) that pays flat interest only (IO) over an interest only period within its life (10,...

Mortgage Swap

A mortgage derivative (specifically an asset swap) in which the fixed rate leg is attached to fixed-rate mortgage payments. The...