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. Related Terms:
Collateralized Mortgage Obligation - CMO
Fannie Mae - FNMA
Freddie Mac - FHLMC
Ginnie Mae - GNMA
Loan
Mortgage
Pass Through Security |