Ginnie Mae pass through

Ginnie Mae pass through definition - business

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. See also Ginnie Mae.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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