MBS - Mortgage Backed Security

The definition of mortgage term: Mortgage Backed Security

A collection of mortgages sold to by the lender to individuals that the lender later sells to a larger investment bank or government-sponsored enterprise such as Fannie Mae (FNMA) and Freddie Mac. This helps to increase the liquidity of funds available for mortgages.


Go back to the Mortgage Terms page to learn more!


Get Started