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fixed income: MBS: non-comforming loan

what is MBS non-comforming loan ? Thanks.

one that does not meet the requirements to be purchased by one of the quasi govt mortgage agencies

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Generally it's because the borrower of the note is of poor credit aka subprime, it's a jumbo mortgage, or the mortgage is exotic. The GSEs do not purchase mortgages that fit one of the above criteria.

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