A mortgage-back security is a debt security created by pooling together a group of mortgage loans whose periodic payments belong to the holders of the security.

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A mortgage-backed security is created by pooling together a group of mortgage loans and then selling bonds that are backed by the payments received from those loans. These bonds are then sold to investors who receive periodic payments based on the cash flows generated by the mortgage loans.

A Mortgage-Back Security Is a Debt Security Created by Pooling