Mortgage Backed Securities (MBS) Homework Help

Mortgage Backed Securities (MBS)

The securities are backed by the mortgage loans, that is, loans secured by specified real estate property, where in the lender has the right to sell the property, if the borrower defaults.

Mortgage-Based Securitisation by the NHB (National Housing Bank)

As a part of its role as the apex body in India for promotion of housing finance, the NHB has, initiated since 2000 securitisation of a pool of identified housing loans. The securitisation process by NHB is illustrated below with reference to the first deal structured by it for a pool of housing loans originated by the HDFC Ltd. in 2000.

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