A mortgage-backed security is hundreds of mortgages bundled together which represents a claim on the monthly payments made on those mortgages.

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A mortgage-backed security is a bundle of mortgages, typically created by banks or other financial institutions, that is sold to investors. The payments that are made on the mortgages are used to pay interest and principal on the bonds that represent the mortgage-backed security. The mortgage-backed security represents a claim on the underlying mortgages, allowing investors to receive a portion of the monthly payments made on those mortgages.

A Mortgage-Backed Security Is Hundreds of Mortgages Bundled Together Which