Mortgage Revenue Bond - MRB

  

Categories: Mortgage

See: Mortgage.

In general, bonds issued by local governments are known as municipal bonds. They cover a host of projects. Road building. Money for new sports stadiums. Funds to construct the Museum of Washing in the birthplace of liquid hand soap.

Mortgage Revenue Bonds, or MRBs, have a narrower focus. The funds raised by these debt instruments get used to build housing for lower-income people.

A muni bond issued to build a road might be backed by toll revenue. These are generally known as revenue bonds. The MRBs are backed by revenue generated by the housing built, and are backed by the government bodies issuing them. See: Federal Housing Administration - FHA.

MRBs are different than the mortgage-backed securities that contributed to the financial crisis in 2007-2008. Those MBSs were issued by private companies. The MRBs are issued by the public sector, usually by local governments or by the Housing Finance Agencies operating on the state level.

Also, because they are a form of muni bonds, many mortgage revenue bonds are exempt from federal taxes.

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Finance allah shmoop shmoop What is a mortgage Well people

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special tax treatment For most people simply put Any interest

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you pay on a mortgage to buy a home is

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in fact earn taxable wages of one hundred grand annually

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some of the cost of renting the money Taub i'm

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ortiz home well why would the u s government be

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so charitable Well because home ownership has been integral part

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i po'ed in seventeen seventy six easy access to mortgages

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a store of wealth and tax dollars for local schools

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