A mortgage pool is a group of mortgages that are securitized and sold to investors. The mortgages in the pool have similar characteristics, such as credit quality, loan type, and maturity date. Mortgage pools are used by mortgage lenders to manage risk and provide liquidity. What is another name for a mortgage? A mortgage is also known as a loan secured by real estate. What is it called when banks sell a bunch of mortgages together? The process of selling a bunch of mortgages together is called securitization.
What is mortgage and its types?
A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives the money needed to purchase the property, and the lender receives periodic payments from the borrower until the loan is paid in full.
There are several types of mortgages, but the two most common are fixed-rate mortgages and adjustable-rate mortgages.
Fixed-rate mortgages are just what they sound like-the interest rate on the loan is fixed for the life of the loan. This means that your monthly payments will stay the same, no matter what happens to interest rates in the wider market.
Adjustable-rate mortgages (ARMs) are a bit more complicated. The interest rate on an ARM is not fixed; instead, it fluctuates with the market. This means that your monthly payments can go up or down, depending on market conditions. What is the term for mortgages that are pooled together and then sold to investors? The term for mortgages that are pooled together and then sold to investors is "mortgage-backed securities." What is overlay in mortgage terms? Overlay is a term used in the mortgage industry to describe when a lender has additional requirements on top of those required by the investor or program guidelines. For example, a lender may require a minimum credit score of 680 for a program that only requires 620. In this case, the lender has an overlay of 60 points.
Lenders often have overlays on government programs like FHA and VA loans. These programs have specific guidelines that lenders must follow. However, some lenders choose to add additional requirements on top of these. For example, a lender may require a minimum credit score of 640 for an FHA loan when the program only requires a 580.
Overlays can vary from lender to lender and may change over time. It's important to check with your lender to see if there are any overlays on the programs you're interested in.