mortgage-backed revenue bond

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Bonds usually issued by a local or municipality, instead of a private lending agency, to lending institutions in order to fund low interest rate mortgages. Mortgage-backed revenue bonds are repaid by the mortgage payments. Each bond has its own (usually short-term) maturity date, which varies from as little as 18 months up to 4 years. These are similar to mortgage backed securities. Also called housing bond.

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