term:

Collateralized Mortgage Obligation

collateralized mortgage obligation n

: a bond collateralized by a pool of mortgage obligations or pass-through securities and paid according to the maturity and amortization schedule of its class and not directly from the underlying obligations called also CMO see also remic compare pass-through security at security, tranche

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.