Mortgage- securities

Mortgage- securities
A security backed by mortgage is regarded as the interest claimand the main expenses from the groupof loans. Once the borrower makes the loan, mortgage companies, banks and other inventors would generally combine this loan with several other loans and try to sell it to the quasi-governmental, governmental and private entities like Government Mortgage Association Federal Mortgage Corporation and Federal Mortgage Association.In the procedure named as securitization, these would pool same loans with the similar rates and credit danger and publish the securities that represent claims on interest and main payments from mortgage loans. Mortgage backed securities are attractive as the yields are generally higher than the bonds of the government.