Legal Definitions - CMO

Definition: CMO is an abbreviation that can stand for two different things:

1. Case-Management Order: This is a legal term that refers to a court order that outlines the steps and deadlines for managing a case. For example, a judge might issue a CMO in a divorce case that sets deadlines for submitting financial documents and scheduling mediation sessions.
2. Collateralized Mortgage Obligation: This is a financial term that refers to a type of investment that is backed by a pool of mortgages. Investors buy shares in the CMO, which entitle them to a portion of the interest and principal payments made by the homeowners whose mortgages are in the pool.

Examples:

• Example 1: The judge issued a CMO in the personal injury case, which required the parties to exchange evidence by a certain date and attend a settlement conference within 60 days.
• Example 2: The investment firm recommended that their clients invest in a CMO that was backed by a pool of high-quality mortgages.

The examples illustrate the two different meanings of CMO. In the first example, CMO refers to a legal document that sets out the steps and deadlines for managing a case. In the second example, CMO refers to a type of investment that is backed by a pool of mortgages.