Fully modified pass-throughs

Fully modified pass-throughs

Agency pass-throughs that guarantee the timely payment of both interest and principal. Related: Modified pass-throughs.

Fully Modified Pass-Throughs

Pass-through securities with principals and interest guaranteed by a U.S. Government agency. A pass-through security is backed by assets or debt; in a fully modified pass-through security, a government agency reduces the risk of default to the pass-through holder by guaranteeing payment. Ginnie Mae makes most of these guarantees, but Freddie Mac and Fannie Mae do as well.