Ginnie Mae pass through

Ginnie Mae Pass-Through

Mortgage-backed pass-through securities with principals and interest guaranteed by Ginnie Mae. A pass-through security is backed by assets or debt; in a Ginnie Mae pass-through security, Ginnie Mae reduces the risk of default to the pass-through holder by guaranteeing payment. It is the most common agency pass-through security.

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Ginnie Mae pass through

A security backed by the Federal Housing Administration, Veterans Administration, and the Farmers Home Administration mortgages that is guaranteed by Ginnie Mae. The issuers of the securities service the mortgages and pass through interest and principal payments to the security holders. During periods of declining interest rates, holders of Ginnie Mae pass throughs are likely to receive extra principal payments as mortgages are refinanced and paid off early. Also called Ginnie Mae. See also adjusted exercise price, current production rate.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.