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.
Related or Semi-related Video
Finance: What is a second mortgage?4 Views
Finance allah shmoop What is a second mortgage Okay you
know what a first mortgages it's otherwise cleverly named what
is called it is called oh yeah Mortgage it's Just
a loan on a house You paid four hundred grand
for this baby Hundred grand down two hundred fifty grand
in a first mortgage And they're still fifty grand You
owe well where's that fifty large coming from the bank
wouldn't loan you any more on a first mortgage that
was costing you six percent a year Tio you know
to rent that money So you had to get a
second mortgage which should things go awry and you become
a statistic Well that's it's fully behind the first mortgage
in the priority stack of payback So in a bankruptcy
situation the first mortgage first what's called a first mortgage
get it fully paid along with any fees associated with
it and back interest accrued and any other things that
are associated with that first mortgage it stands in line
first in priority Then any cash leftover gets attributed to
that second mortgage So not surprisingly second mortgage money costs
a lot more to rent then first mortgage money because
the risk of non payment in a bad situation is
meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living
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