Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 38

A mortgage is a loan that is backed by the collateral of specified real estate property. The borrower of funds, the mortgagor, is obliged to make periodic payments to the lender, the mortgagee, to retire the debt. In the event of the mortgagor defaulting, the lender can foreclose the mortgage, which means that the lender can take over the property to recover the balance due.

A mortgage by itself is an illiquid asset for the party that makes the loan to the home buyer. Such lenders are called originators. To rotate their capital, lenders will typically pool mortgage loans and issue debt securities backed by the underlying pool. Such securities, the cash flows for which arise from the payments made by borrowers of the underlying loans, are referred to as mortgage-backed securities. The process of converting an illiquid asset such as a home loan into liquid marketable securities is referred to as securitization. The process of securitization, although it is common in the case of mortgage lending, is not restricted to such loans. In practice, receivables from automobile loans and credit card receivables are also securitized. The securities generated in the process are referred to as asset-backed securities.