Collateralized Mortgage Obligation (CMO)
Definition of "Collateralized Mortgage Obligation (CMO)"
Mortgage-backed, pass-through securities that segregates mortgage pools into short, medium, and long-term. CMOs arose because GNMA or FHLMC mortgage-backed securities have uncertain time periods because of the possibility of prepayment of the principal balance on the mortgages. By separating mortgage pools into different time periods, investors now can buy shares in short-term or long-term pools. See also mortgage-backed securities.
Popular Real Estate Terms
Secondary written agreement to purchase real property in the event the initial contract is not signed. ...
Clause in a mortgage that allows the borrower to pay more than the monthly amount and to retire the loan early without a penalty. ...
In real estate, the basis to set an adjustable rate mortgage, such as a 6-month certificate of deposit (CD) rate, cost of funds index, or prime rate. A statistical measure stated as ...
The Department of Veterans Affairs (VA), formerly known as Veterans Administration, issues the Certificate of Reasonable Value (CRV), an appraisal, determining the highest value and loan ...
Right to property depends on some occurrence. ...
Act of obtaining land through condemnation. For example, when in interstate highway must be constructed, the land for the new road is obtained through takings. Usually, the government ...
The meaning of topography defines the science of mapping a specific region’s physical features. In short, the topography describes an area’s characteristics, such as its ...
Contractual agreement between a commercial or industrial rental property owner and an individual or firm who agrees to maintain the property. Management agreements specify the nature of ...
House design to be easily expandable. ...
Have a question or comment?
We're here to help.