debenture is a type of long-term bond or note given as evidence of debt. Unlike a mortgage note, a debenture is not secured by a specific property. Fannie Mae issues debentures to finance the acquisition of mortgages in the secondary mortgage market. If a borrower defaults on an FHA loan, the government gives interest-bearing debentures to the mortgagee after the title is transferred to FHA. (See Fannie Mae, FHA).
Barry Goldsmith
| APA | Barry Goldsmith. (2010). debenture. Retrieved September 20, 2026, from http://smartdefine.org/debenture/definitions/1151512 |
| Chicago | Barry Goldsmith. 2010. "debenture" http://smartdefine.org/debenture/definitions/1151512 (accessed September 20, 2026). |
| Harvard | Barry Goldsmith 2010, debenture, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/debenture/definitions/1151512>. |
| MLA | Barry Goldsmith. "debenture" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/debenture/definitions/1151512> |