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pass-through certificate

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Financial Dictionary

Pass-through Certificate

Fixed-income securities that represent an undivided interest in a pool of federally insured mortgages put together by the Government National Mortgage Association (Ginnie Mae).

Investopedia Commentary

Mortgage-backed certificates are the most common type of pass-through, where homeowners' payments pass from the original bank through a government agency or investment bank to investors.

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See also: Collateralized Mortgage Obligation (CMO), Commercial Mortgage Backed Securities (CMBS), Fannie Mae, Ginnie Mae, Mortgage, Mortgage Backed Security (MBS), Pass-Through Security

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