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What does RMBS stand for?

RMBS stands for Residential Mortgage Back Securities


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Residential mortgage-backed securities and commercial mortgage-backed securities serve as the foundation for other financial instruments, such as collateralized mortgage obligations (CMO). Their complexity depends on the income provided to investors and the amount of risk that investors assume. A pass-through style of RMBS allows an investor to receive a share of interest and principal payments, while a CMO may have a structure that allows investors to assume more risk but also potentially more return.
The U. S. District Court for the Southern District of New York is refusing to throw out the shareholder securities fraud lawsuit filed against Deutsche Bank (DB) and three individuals over their alleged role in marketing residential mortgage-backed securities and mortgage-backed securities before the economic crisis. The court found that the plaintiffs, led by Building Trades United Pension Fund, the Steward International Enhanced Index Fund, and the Steward Global Equity Income Fund, provided clear allegations that omissions and misstatements were made and there had been a scam with intent to defraud.
The origins of modern residential mortgage-backed securities can be traced back to the Government National Mortgage Association (Ginnie Mae),[3] although variations on mortgage securitization existed in the U. S. in the late 1800s and early 1900s. [4] In 1968, Ginnie Mae was the first to issue a new type of government-backed bond, known as the residential mortgage-backed security. [5] This bond took a number of home loans, pooled the monthly principal and interest payments and then used the monthly cash flows as backing for the bond(s).