What does CD mean in mortgage?

CD stands for certificate of deposit. In the context of mortgages, it usually refers to a specific type of CD called a “mortgage-backed security” (MBS).

An MBS is a type of bond that is backed by mortgages. When you buy an MBS, you are essentially buying a slice of a pool of mortgages.

MBSs are often used by lenders as a way to securitize mortgages. This means that the lender can sell off pieces of the mortgage pool to investors, which can then be used to finance more mortgages.

MBSs can be a good …