Mortgage Pass-Through Security

Business / Finance / Mortgage Pass-Through Security: Also called a pass-through, a security created when one or more mortgage holders form a collection (pool) of mortgages and sells shares or participation certificates in the pool. The cash flow from the collateral pool is 'passed through' to the securityholder as monthly payments of principal, interest, and prepayments. This is the predominant type of MBS traded in the secondary market.

Other Words for Security

Security Verb Synonyms: safety, shelter, protection, fastness, refuge, safe keeping, sanctuary, asylum
MORE

Pass-Through Securities

Business / Finance / Pass-Through Securities: A pool of fixed income securities backed by a package of assets (i.e., mortgages) where the holder receives the principal and interest payments. Related: Mortgage pass-through security MORE

Pass-Through Rate

Business / Finance / Pass-Through Rate: The net interest rate passed through to investors after deducting servicing, management, and guarantee fees from the gross mortgage coupon. MORE

Pass-Through Security

Business / Real Estate / Pass-Through Security: A security issued by the Government National Mortgage Association (Ginnie Mae) to mortgage investors. Cash flows from the underlying block individual mortgage loans are passed through to the holders o MORE

Links
Home
Glossary
Thesaurus