Includes the financial securities that represent an ownership interest in a pool of mortgage loans.

The text you provided seems to be describing Mortgage-Backed Securities (MBS). Here's a step-by-step explanation:

1. Mortgage loans: These are loans issued by a bank or other financial institution allowing a borrower to purchase a home. The home itself serves as collateral for the loan.

2. Pool of mortgage loans: This is a group of many such mortgage loans that a financial institution has issued to different borrowers.

3. Ownership interest in a pool of mortgage loans: This means that an investor has bought a share or 'interest' in this pool of loans. Essentially, they have given the bank money in exchange for the right to receive a portion of the payments that the borrowers make on their loans.

4. Financial securities: These are tradable financial assets, like stocks or bonds. In this case, the security is the ownership interest in the pool of mortgage loans.

5. Mortgage-Backed Securities (MBS): This is the term for the financial securities that represent an ownership interest in a pool of mortgage loans. When an investor buys an MBS, they are buying the rights to receive a portion of the payments on a group of mortgage loans. The risk is that if many of the borrowers in the pool default on their loans, the investor may not get all of their money back.