Mortgage-backed securities (MBS) on which registered holders receive an aggregate principal and interest payment from a central paying agent on all their certificates. Principal and interest payments are disbursed on the 20th day of the month. GNMA-II MBS are backed by multiple-issuer pools or custom pools (one issuer but different interest rates that may vary within one percentage point). Multiple-issuer pools are known as "jumbos." Jumbo pools are generally longer and offer certain mortgages that are more geographically diverse than single-issuer pools. Jumbo pool mortgage interest rates may vary within one percentage point.
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A certain type of mortgage-backed, pass-through security issued by Ginnie Mae. Mortgages backing each GNMA-II may be made by different issuers and/or have different interest rates. The mortgages may be more geographically diverse or have other special features that reduce their risk. GNMA-II is pronounced "Ginnie Mae Two."
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