When you are using the word in the middle of a discussion, or when referring to another person as a mamabicho not in a literal way, the word is used as an insult towards someone that is corrupted, selfish, liar, politician, thief.
A "mamabicho" is a Puerto Rican insult that can be used to describe a guy who acts femininely or outright gay. It is also used to describe call-boys/ male-prostitutes.