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What does mortgage-backed security mean?

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What does mortgage-backed security mean?

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• MORTGAGE-BACKED SECURITY (noun) The noun MORTGAGE-BACKED SECURITY has 1 sense: 1. a security created when a group of mortgages are gathered together and bonds are sold to other institutions or the public; investors receive a portion of the interest payments on the mortgages as well as the principal payments; usually guaranteed by the government Familiarity information: MORTGAGE-BACKED SECURITY used as a noun is very rare.

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