guaranteed mortgage certificate

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Guaranteed Mortgage Certificate

A mortgage-backed security issued by Freddie Mac. As with all mortgage-backed securities, the coupons on guaranteed mortgage certificates are paid out of the principal and interest on a pool of mortgages underlying the securities. However, GMCs have a guaranteed average life, meaning that Freddie Mac protects the investor from prepayment risk by guaranteeing principal and interest payments in the event that too many mortgage holders pay back their loans early, depriving the pool of interest it otherwise would have received. See also: collateralized mortgage obligation.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

guaranteed mortgage certificate

A pass through issued by Freddie Mac in which conventional mortgages purchased by Freddie Mac are resold to investors in $100,000, $500,000, and $1,000,000 principal amounts. Interest is paid semiannually and principal repayments are made annually. See also pass-through security.
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.
References in periodicals archive ?
"There are big developments on the horizon for GMC," said Nadim Ghrayeb, regional brand manager for GMC.
"The new look 2015 lineup is true to GMC's 'commands respect' tagline.
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As with systolic BP, diastolic BP was significantly lower (by 3.8 mm Hg) in the GMC group than in the usual-care group.
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But now, Dr Myhill who believes healthy sleep patterns can help to cure depression has vowed to take action against the GMC after having all the allegations made against her dropped.
Her friends are also demanding an independent investigation into the conduct of the GMC, by pressuring MPs and the House of Lords for an inquiry.
Last week the GMC refused to comment on Dr Myhills complaint and declined to confirm whether the doctor was facing a GMC investigation.