Dictionary Home » The American Heritage Dictionary of Business Terms » mortgage participation certificate

mortgage participation certificate

mortgage participation certificate definition - business

mortgage participation certificate

A pass-through security that represents ownership in a pool of conventional mortgages put together by Freddie Mac. Freddie Mac guarantees principal and interest on the certificates, and the income is subject to federal, state, and local taxation. See also pass-through security.

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.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.