Whole Loan
A term used to distinguish between an original mortgage loan and a pass-through security.
Investopedia Commentary
Whole loans are usually larger in size than the maximum amount allowed within GNMA, FNMA and, FHLMC's standards. Private entities pool whole-loans together with credit enhancements to create whole loan CMOs. Credit enhancements ensure investors receive timely interest payments.
See also: Collateralized Mortgage Obligation - CMO, Fannie Mae - FNMA, Freddie Mac - FHLMC, Ginnie Mae - GNMA, Loan, Mortgage, Pass Through Security
Also spelled: hole loan, wholeloan