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Pooled Mortgage Fund Pooled mortgage funds typically have a smaller minimum investment amount which makes them more accessible to a wide range of investors. Your investment is shared across a collection of mortgages and not linked to a specific loan which helps to minimise the lending risk.
These Bonds Are Cheap?and Yield 5% The U.S. mortgage securities market is enormous at $8 trillion, but it gets little attention from investors. That's a mistake because yields on mortgage securities, now in the 4.5%-to-5.5% range, are unusually appealing relative to U.S. Treasuries, and carry little or no credit risk.
Mortgage-backed securities (MBS) are investment products similar to bonds. Each MBS consists of a bundle of home loans and other real estate debt bought from the banks that issued them. Investors in mortgage-backed securities receive periodic payments similar to bond coupon payments.
The pool factor measures how much outstanding of the original loan principal remains. Pool factors are most commonly calculated on an MBS. Pool factors range from zero to one, beginning at one when the loan begins and finishing at zero when it is fully paid off. The pool factor helps determine the value of an ABS.
The ?Pooling and Servicing Agreement? is the legal document that contains the responsibilities and rights of the servicer, the trustee, and others over a pool of mortgage loans.
What Is a Mortgage Pool? A mortgage pool is a group of mortgages held in trust as collateral for the issuance of a mortgage-backed security. Some mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae are known as "pools" themselves. These are the simplest form of mortgage-backed security.