Definition: The word "mortgage zoo" refers to a commercial real estate investment opportunity that involves purchasing a mortgage-backed security or mortgage backed asset (MBA) from a bank or other financial institution. The term comes from the slang word for "zoopla," which is a common form of online shopping. A mortgage zoo typically consists of multiple mortgage-backed securities, often issued by different banks and/or mortgage companies, that are packaged together into a single product. Investors in the mortgage zoo typically purchase these securities as a way to secure an interest in a specific portion of the underlying real estate or mortgage loan. The term "mortgage zoo" is often used as a marketing tool to attract potential investors interested in purchasing mortgages and related products. It can also be used to describe a type of retail investment opportunity where consumers are given a choice between multiple brands of merchandise, each offering unique features and benefits. Overall, the use of this phrase suggests that there may be an extensive network or ecosystem involved in the purchase and sale of mortgage-backed securities or mortgages, making it possible for investors to obtain exposure to potentially lucrative opportunities.
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