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  • Unofficial mREIT Definitions 0 comments
    Aug 14, 2011 8:38 PM | about stocks: AGNC, NLY, HTS, CYS

    "agency" means each of Fannie Mae, Freddie Mac and Ginnie Mae.

    "agency mortgage investments" means mortgage-backed securities whose principal and interest payments are guaranteed by a U.S. Government agency or GSE. These securities are collateralized by residential mortgage loans and may be either "pass through" securities, where cash flows from the underlying mortgage loan pool are paid to holders of the securities on a pro rata basis, or securities structured from "pass through" securities, as to which cash flows are redirected in various priorities, which we refer to as CMOs.

    "ARMs" means adjustable-rate residential mortgage loans.

    "CFPB" means the Consumer Financial Protection Bureau.

    "CMBS" means commercial mortgage-backed securities.

    "CPR" means constant prepayment rate.

    "CMO" means a collateralized mortgage obligation.

    "Fannie Mae" means the Federal National Mortgage Association.

    "FHA" means the Federal Housing Administration.

    "FHFA" means the U.S. Federal Housing Finance Agency.

    "Freddie Mac" means the Federal Home Loan Mortgage Corporation.

    "Ginnie Mae" means the Government National Mortgage Association, a wholly-owned corporate instrumentality of the United States of America within the U.S. Department of Housing and Urban Development. Ginnie Mae is a U.S. Government agency.

    "GSE" means a U.S. Government-sponsored entity such as Freddie Mac or Fannie Mae.

    "HERA" means the Housing and Economic Recovery Act of 2008.

    "highly-rated" tranches of MBS means those tranches that are the more senior tranches of a given securitization.

    "hybrid ARMs" means residential mortgage loans that have interest rates that are fixed for a specified period of time (typically three, five, seven or ten years) and, thereafter, adjust to an increment over a specified interest rate index.

    "jumbo mortgage loans" means residential mortgage loans with an original principal balance in excess of the maximum amount permitted by the agency underwriting guidelines.

    "MBS" means mortgage-backed securities.

    "mortgage loans" means loans secured by real estate with a right to receive the payment of principal and interest on the loan (including servicing fees).

    "non-agency RMBS" means non-agency residential mortgage-backed securities that are collateralized by residential mortgages.

    "non-prime mortgage loans" means mortgage loans that may range from higher credit quality with documentation exceptions to lower credit quality where the borrower has significantly blemished credit or there are other underwriting exceptions. Generally these loans do not conform to agency underwriting guidelines.

    "prime mortgage loans" means residential mortgage loans that generally conform to Ginnie Mae or GSE underwriting guidelines.

    "REMIC" means a real estate mortgage investment conduit.

    "RMBS" means residential mortgage-backed securities.

    "TBAs" means to-be-announced forward contracts. In a TBA, a buyer will agree to purchase, for future delivery, agency mortgage investments with certain principal and interest terms and certain types of underlying collateral, but the particular agency mortgage investments to be delivered is not identified until shortly before the TBA settlement date.

    "TRS" means a taxable REIT subsidiary.

    "whole loans" means original residential or commercial mortgage loans that are sold in their entirety and are not securitized.

    "whole pool" means agency mortgage investments issued with respect to an underlying pool of mortgage loans in which a buyer holds all of the certificates issued by a pool.


    Stocks: AGNC, NLY, HTS, CYS
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