A Ginnie Mae pass-through security is backed by a pool of mortgages and guaranteed by the Government National Mortgage Association (GNMA), passing through to investors the interest and principal payments of homeowners.
A Participation Certificate is a financial instrument representing a share in a pool of funds or in other assets, such as mortgage pools. It provides investors with a means to invest in collective assets and receive proportional income from those assets.
Pass-through securities represent a financial instrument where income generated from a pool of underlying assets, such as loans or mortgages, is passed on to investors through intermediaries.
A term used in the secondary mortgage market to distinguish an investment that represents an original residential mortgage loan (whole loan) from a loan representing a participation with one or more lenders or a pass-through security representing a pool of mortgages.
