Mortgage backed security.

So what is a mortgage backed security?

I suffered from my mortgage loan.

So that's what a mortgage backed security is.

Welcome to my presentation on mortgage backed securities.

And you end up with a mortgage backed security.

I have a whole video on mortgage backed securities.

This is actually a mortgage backed collateralized debt obligation.

And they rate these assets, these mortgage backed securities.

CDOs, collateralized debt obligations, are derived from mortgage backed securities.

Now let's do the example with a mortgage backed security.

And this is what this mortgage backed security market allows.

Let's say you take out a 200,000 mortgage loan.

And so money came from when the owners of each of these mortgage backed securities each, let's say, paid 1,000 for the mortgage backed securities.

You call them stock, or stock options, derivatives, mortgage backed securities.

And that's why we say that it's a mortgage backed security.

Welcome back to my series of presentations on mortgage backed securities.

loan, because this isn't a traditional loan, an interest only loan but for the sake of this presentation, how it's different than a mortgage backed security, the important thing to realize is that the bank would have kept the loan.

And these shares would be called Mortgage Backed Securities. or sometimes MBSes.

Those are essentially derivative securities that are derived from mortgage backed securities.

Well it comes from the investors in the actual mortgage backed securities.

That's how loans worked before the mortgage backed security industry really got developed.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

Maybe they'll buy mortgage backed securities, so it makes the mortgage market a little bit looser, a little bit more liquid.

These were conforming loans, there wasn't this whole CDO and mortgage backed security market.

He had to mortgage all his life savings to make a bank loan.

This is highly rated mortgage backed securities, maybe they have a slightly higher interest rate.

So these shares each of these one million shares this is a mortgage backed security.

Essentially you can almost fueled on interest to the owner of the Mortgage Backed Security.

This is going to be a mortgage that's going to be backed by my house.

So what they say is, Sal, we're only going to give you this loan, but this loan has to be backed.

But the average house anyone who's traded mortgage bonds will tell you the average mortgage loan has a 10 year expected life.

And actually that's what the buyer of the mortgage backed security should try to figure out.

But if you have a mortgage backed security, you can actually trade the security with someone else.

But what you read about the most right now in the newspapers is mortgage backed collateralized debt obligations.

What I want to do in this video is go over the math behind a mortgage loan.

local bank for a loan this is me again I would go to my local mortgage broker.

All a mortgage backed security is a loan to a big group of people and you put them all together so that you can kind of, you know, be able to statistically give it properties.

The mortgage...

I only have two minutes left in this presentation, so in the next presentation I'm going to focus on what this guy can now do with the loan to turn it into a mortgage backed security.

Totally backed up.

You might just want to watch the video on mortgage backed securities and collateralized debt obligations if you need a refresher there.

He backed abruptly away.

LDB backed for KConfig

backed up for hours.