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What is a mortgage pay-through bond (MPTB)? How does it resemble a mortgage-backed bond (MBB)? How does it differ?

What is a mortgage pay-through bond (MPTB)? How does it resemble a mortgage-backed bond (MBB)? How does it differ?

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Expert Solution

MPTBs are issued against mortgage pools and, like MPTs, cash flows from the pool are passed through to security holders. However, unlike an MPT, this security is a bond and not an undivided equity ownership interest in a mortgage pool. Like the MBB, the MPTB is a debt obligation of the issuer, who retains ownership of the mortgage pool.

Raffay answered 2 years ago
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