mortgage-backed revenue bond

mortgage-backed revenue bond definition - business

mortgage-backed revenue bond

A municipal bond, the proceeds of which are used to provide funds to financial institutions for making mortgage loans at relatively low interest rates. Interest and principal on the bond are backed by borrower payments on the mortgages. As with other revenue bonds, the quality varies significantly among different issues of these securities.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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