Whole Loan

A term used to distinguish between an original mortgage loan and a pass-through security.

Investopedia Says:
Whole loans are usually larger in size than the maximum amount allowed within GNMA, FNMA and, FHLMC's standards. Private entities pool whole-loans together with credit enhancements to create whole loan CMOs. Credit enhancements ensure investors receive timely interest payments.

Secondary Mortgage Market term that distinguishes an investment representing an original residential mortgage loan (whole loan) from a loan representing a participation with one or more lenders or a Pass-Through Security representing a pool of mortgages.

Secondary mortgage market term that distinguishes an investment representing an original residential mortgage loan (whole loan) from a loan representing a participation with one or more lenders or a Pass-Through Security representing a pool of mortgages.

Mortgage loan sold in its entirety, without any participation kept by the seller. The investor assumes all contractual rights and responsibilities, and may pay the seller a Servicing fee for collecting principal and interest payments. The purchase price usually is discounted when the mortgage Coupon is below current market rates.