A mortgage-backed security is a type of asset-backed security that is secured by a mortgage, or more commonly a collection of sometimes hundreds of mortgages in a portfolio. Hopefully they are doing better due diligence than FANNIE and FREDDIE did when they backed all those bogus portfolios between 2003 – 2005, right before the real estate crash. Hundreds of thousands of purported AAA portfolios were sold and resold and resold again. Come to find out they were only the best l