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Definition: Pass-Through Certificate
Fixed-income securities which represents an undivided interest within a group or pool of mortgages insured by federally that are put together by the Government National Mortgage Association (Ginnie Mae).
The certificates backed by mortgage are the most popular type of pass-through, wherein the payments by the owners of the home is passed from the original bank by an investment bank or by a government agency to the investor or investors.
The transfer of payment takes place only through the help of investment bank or government.
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