Unlock the intricacies of Mortgage-Backed Securities (MBS), where you’ll learn about residential loans, dive into the realm of residential and commercial MBS, and understand their unique market and instrument features. This lesson is your roadmap to mastering MBS fundamentals, from mortgage loans to securitization processes.
Residential Mortgage Loans
Strap in for a crash course in residential mortgage loans! This lesson breaks down the basics, from what a residential mortgage loan is, to the key characteristics and types of mortgage loans, including prime and subprime. Plus, you’ll learn about lender rights in foreclosure and get to grips with the nitty-gritty of loan-to-value ratios. It’s a mortgage marvel!
► Jump into the world of residential mortgage loans here.
Residential Mortgage-Backed Securities
Get ready to navigate the riveting realm of Residential Mortgage-Backed Securities (RMBS)! This lesson breaks down the different sectors of RMBS, the contrasts between agency and non-agency RMBS, and the key role of prepayment risk. Plus, you’ll dive deep into how tranching and credit enhancements can manage risks and make non-agency RMBS attractive to investors. It’s all about mastering the mortgage market!
► Take a deep dive into Residential Mortgage-Backed Securities here.
Commercial Mortgage-Backed Securities
Embark on a journey into the bustling world of Commercial Mortgage-Backed Securities (CMBS)! This lesson unearths the key distinctions between CMBS and residential MBS, with a special focus on credit risk analysis, and the vital role of Debt-Service-Coverage and Loan-to-Value ratios. You’ll also get to grips with CMBS-specific features like call protection, balloon maturity provisions, and subordinated tranches. Next stop? Non-mortgage-backed securities!
► Dive deeper into Commercial Mortgage-Backed Securities here.
