Mortgage-backed securities (MBS) are debt obligations that
represent claims to the cash flows from pools of mortgage loans,
most commonly on residential property. Mortgage loans are purchased
from banks, mortgage companies, and other originators and then
assembled into pools by a governmental, quasi-governmental, or
private entity. The entity then issues securities that represent
claims on the principal and interest payments made by borrowers on
the loans in the pool, a process known as securitization.