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Simple English definitions for legal terms

mortgage-backed security

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A quick definition of mortgage-backed security:

A mortgage-backed security is like a big pie made up of many smaller pieces of pie. Each small piece is a loan that someone took out to buy a house. When you buy a slice of the big pie, you are really buying a part of all those loans. The people who made the loans get money from you, and you get money back when the loans are paid back. It's a way to invest in lots of loans at once.

A more thorough explanation:

A mortgage-backed security is a type of investment where a person buys a part of a group of mortgage loans. This means that the person is investing in a pool of mortgages instead of just one mortgage.

For example, a bank might have $10 million worth of home mortgages. They can sell this pool of mortgages to a government agency or a securities firm. The agency or firm then creates a new investment called a mortgage-backed security. People can buy a piece of this investment, which means they own a small part of the pool of mortgages.

When people pay their mortgages, the money goes to the agency or firm that created the mortgage-backed security. The agency or firm then pays the people who invested in the mortgage-backed security. This means that people who invest in mortgage-backed securities can earn money from the interest that people pay on their mortgages.

Overall, mortgage-backed securities are a way for people to invest in a group of mortgages instead of just one mortgage. This can be a good investment for people who want to earn money from the interest that people pay on their mortgages.

mortgage servicer | Mortgagee

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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