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.
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Founded in 1934 and located in Garden, CA with 1993 membership of 9,000, the IRWA is a professional association of appraisers, property managers, title examiners, and others having interest ...
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