what are the different types of mortgage backed securities 
there are two common types of mortgage backed securities pass through securities and collateralized mortgage obligations known as cmos pass through securities are structured as trusts the mortgage payments are collected and passed on to investors cmos are made of pools of securities called tranches which are given specific credit ratings and rates that are returned to investors the bottom linejumbo pools are large pass through securities that are collateralized by multiple issuer pools they tend to be safer than single issuer pools because they consist of more diverse mortgages that are not geographically linked although they are open to the same risks as singe issuer pools namely early payment risk and the shrinking of the principal they are still considered a less volatile investment 