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
In an electrical system, the connection box where all the circuit systems are installed with a series of electrical breakers. The major distribution or collection duct in an ...
A federal act requiring potential purchasers and lessees of undeveloped land be provide with all necessary information required to make an informed decision regarding the desirability of ...
A 12-month period used by a real estate company or partnership to account for and report business operations. Typically, the fiscal year ends December 31. ...
A situation where a real estate company spends more money than it receives within a stated period of time. This is an unfavorable situation that may result in financial difficulties. A ...
Keeps something under control, such as water and sand. It blocks natural flow and settling of earth. It performs the same function as a dam would for water. ...
One tenth of a cent. Mills are a common term in expressing tax rates per dollar of assessed valuation. For example, a property is taxed at the rate of 80 mills. If a property were assessed ...
Storage of inactive items, including automobiles, for a certain period. Normally, a storage facility, charging a fee, provides dead storage of items. To prevent deterioration, dead ...
Layer of material put on the outside wall or foundation to prevent the intrusion of water or humidity into the structure. A moisture barrier is constructed out of plastic, aluminum foil, or ...
To acquit, exonerate, absolve, or discredit allegations. ...
Have a question or comment?
We're here to help.