Pass-Through Certificate

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DEFINITION of 'Pass-Through Certificate'

Fixed-income securities that represent an undivided interest in a pool of federally insured mortgages put together by the Government National Mortgage Association (Ginnie Mae).

BREAKING DOWN 'Pass-Through Certificate'

Mortgage-backed certificates are the most common type of pass-through, where homeowners' payments pass from the original bank through a government agency or investment bank to investors.

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