Borrowing money to buy a home used to be straightforward. Nowadays, the promise to pay back the borrowed money (Note) is transferred into securities, known as mortgage-backed securities (MBS), and pieces of this MBS are sold in the form of certificates to investors all over the world. The Deed of Trust, which secures the promise to pay with the home, also known as a mortgage, lives in a virtual world somewhere between your home and the investors in the security holding your Note.
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A BLOG FROM JAMES A. KNOWLTON
