For Collateralized Mortgage Obligation (CMO) we have terms and definitions in 4 topics. The topics are Accounting, Accounting Terms, Derivatives and Finance.

Collateralized Mortgage Obligation (Cmo) (Accounting)

orsince 1986as a Real Estate Mortgage Investment Conduit (REMIC). CMOs and REMICs (terms which are often used interchangeably) are similar types of securities which allow cash flows to be directed so that different classes of securities with different maturities and coupons can be created. They may be collateralized by mortgage loans as well as securitized pools of loans.

Collateralized Mortgage Obligation (Cmo) (Accounting Terms)

SECURITY whose cash flows equal the difference between the cash flows of the collateralizing ASSETS and the collateralized obligations of a securitized TRUST. Characteristics of CMO residuals vary greatly and can be extremely complex in nature.

Collateralized Mortgage Obligation (Cmo) (Derivatives)

A portfolio of claims against a portfolio of mortgages and/or Mortgage-Backed Securities. The claims separate naturally into "tranches" that differ by the rules defining their interest and principal payments. One of the charms of the CMO is the wide range of possible rules. However, the sum over all tranches of the CMO interest (principal) payouts must equal the sum over all mortages and/or MBS's of interest (principal) payments – except for any difference due to servicing or the issuer's residual. The CMO is archaic, and the REMIC (q.v.) is a more current vehicle for derivatives of a portfolio of mortgages.

Collateralized Mortgage Obligation (Cmo) (Finance)

A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through security.

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