Valuation of Residential Mortgage-Backed Securities
Fabozzi gives the definition of a mortgage in his book the Handbook of Fixed Income Securities as follows: “A mortgage loan is a loan secured by the collateral of some specified real estate property, which obliges the borrower to make predetermined series of payments.” A mortgage is a contract between the lender (mortgagee) and the borrower (mortgagor) in which the mortgagee has the right ... ................
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