Glossary Word Definition: Private-Label Mortgage Securities

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Private-Label Mortgage Securities

Private-label mortgage securities, whether pass-throughs or Collateralized mortgage obligations (CMOs), are the sole obligations of their issuer and are not guaranteed by any governmental entitiy. However, many private-label CMOs are backed by pass-through securities issued or guaranteed by Ginnie Mae, Fannie Mae or Feddie Mac, meaning that collateral backing these securities carries the respective agency's or government-sponsored enterprise's guarantees.