Mortgage Note Investing vs Mortgage Backed Securities

[Shea Davidson]

Hi,

Can someone explain the difference between mortgage note investing through somewhere like FCIExchange or LoanMLS vs buying a MBS?  I want to make sure i understand the difference and the advantages of each.  

Thanks,

Shea D.

[Andy Mirza]

@Shea Davidson When you're dealing with individual loans, people refer to them as "whole loans." Typically, MBS's are made up of a number of whole loans. An originator I know takes whatever loans he originated for the month, securitizes them into a mortgage backed bond and sells that to a bank or a wall street fund.