Pass-through

Pass-through Securities
Undivided interests in pools of mortgages. The sponsoring organizations, for example, ...

PASS-THROUGH (PT)
International economists usually call pass-through period the interval within which the domestic price of foreign goods adjusts to the exchange rate changes.

pass-through security

Security, backed by a pool of mortgage loans or other debt instruments, that provides the holder with the cash flow from the mortgage/debt payments.

pass-throughs
operating expenses that can be charged to the tenant along with the usual rent , as defined in the lease .
Example: Common pass-throughs in commercial leases are tax stops , stopclauses , and Common Area Maintenance (CAM) .

Pass-through coupon rate
The interest rate paid on a securitized pool of assets, which is less than the rate paid on the underlying loans by an amount equal to the servicing and guaranteeing fees.

AGENCY PASS-THROUGHS - Mortgage pass-through securities whose principal and interest payments are guara...
AGENCY PROBLEM - Conflicts of interest among stockholders, bondholders, and managers.

Modified pass-throughs
Definition: [crh] Agency pass-throughs that guarantee (1) timely interest payments and (2) Definition: principal"principal payments as collected, but no later than a specified time after they are due.

Ginnie Mae pass-through
A security guaranteed by the Government National Mortgage Association that is backed by a collection of mortgages, in which the investor receives the interest and principal payments of participating homeowners.

pass-through A security issued by a special purpose vehicle that pays investors whatever net cash flows the special purpose vehicle's assets generate.

Pass-Through
Security in which the periodic interest and principal are passed from a mortgagor to an investor through an intermediary.
Pass-Through Security ...

Pass-through security
When a corporation or government agency buys loans from lenders to pool and package as securities for resale to investors, the products may be pass-through securities.

pass-through
The original type of MBS structure. In a pass-through, investors own a pro rata claim to the cash flows from the pool of underlying mortgages.

Pass-Through
Pass-through operations (also called transshipments) involve a foreign country's use of one country in a trade bloc as a means of gaining preferential treatment from other countries in the bloc.
See: Transshipment.

Pass-through rate
The net interest rate passed through to investors after deducting servicing, management,
and guarantee fees from the gross mortgage coupon.
revenue-driven expenses ...

Pass-through security: In a pass-through security, debt obligations are purchased by an intermediary who packages them into new securities backed by the pooled obligations and then sells shares in the pool in the open market.

Pass-through securities
A pool of fixed income securities backed by a package of assets (i.e., mortgages) where the holder receives the principal and interest payments. Related: Mortgage pass-through security
Passive investment management ...

Pass-through security
When agencies like the Federal National Mortgage Association (FNMA) or the Student Loan Marketing Association (SLMA) buy various types of debt-such as mortgages or student loans-from lenders and package them as securities for ...

Pass-Through Account (in banking)
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Pass-Through Rate
The rate on a securitized asset pool - such as a mortgage-backed security (MBS) - that is "passed-through" to investors once management fees and guarantee fees have been paid to the securitizing corporation.

Pass-through
A securitization mechanism whereby the cash flows of the underlying assets are passed through, essentially unchanged (after deduction of administrative expenses) to the security holder. Traditional Ginnie Mae MBS are passthroughs.
Payee ...

A pass-through tax entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms.

A pass-through entity is closely held if, at any time during any redetermination year, 50 percent or more (by value) of the beneficial interests in that entity are held (directly or indirectly) by or for 5 or fewer persons.

Agency pass-throughs that guarantee the timely payment of both interest and principal. Related: modified pass-throughs
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Agency pass-throughs that guarantee (1) timely interest payments and (2) principal payments as collected, but no later than a specified time after they are due.
Monetarist ...

A GNMA pass-through certificate backed by fixed-rate mortgages with a 15-year maturity. GNMA Midget is a dealer term and is not used by GNMA in the formal description of its programs.
Gnomes ...

Some are pass-through securities, with principal and interest repaid over the term of the loan. Still other issues are sold at discount, with interest included in the amount paid at maturity.

Modified pass-throughs that guarantee (1) timely payments and (2) principal payments as collected, but no later than a specified time after they are due. Related: ...

Mortgage pass-through
A security representing a direct interest in a pool of mortgage loans.

Fully modified pass-throughs
Agency pass-throughs that guarantee the timely payment of both interest and principal. Related: Modified pass-throughs.

Pass-through
The extent to which an exchange rate change is reflected in the prices of imported goods.

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

Although Ginnie Mae pass-throughs have benefited the home mortgage market (increased capital available for lending), an investor's rate of principal repayment may be uncertain.

Certificates of Amortized Revolving Debt (CARD) Pass-through securities backed by credit card receivables. Certificates of Automobile Receivables (CAR) Pass-through securities backed by automobile loan receivables.

Real Estate Mortgage Investment Conduit (REMIC) A pass-through tax entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, ...

pass-through A security signifying pooled debt obligations, passing income from debtors to... pass-through coupon rate The interest rate paid on a pass-through security.

Pass-through securities backed by credit card receivables. Carry Related:net financing cost. Carring costs Costs that increase with increases in the level of investment in current assets. Carrying value Book value.

The FHLMC purchases mortgages from federally insured financial institutions and resells them in the form of mortgage-backed, pass-through certificates. 2. A security issued by the FHLMC secured by pools of conventional home mortgages.

PASS-THROUGH ENTITY A nontaxable entity such as a partnership. Generally, the income or expense is passed to the underlying owner.
PATENT Form of intellectual property.

pass-through certificate A security issued by a financial institution that represents a part of a mortgage pool. passive portfolio management A method of choosing individual securities designed to track a specific benchmark.

Securitization The transfer of loans (ASSETS) of a homogeneous nature, from a lending institution to investors through an intermediary, by packaging them in the form of securities which are usually termed "PASS-THROUGH SECURITIES".

Lenders argue that the real estate attorney's fee, for example, is a pass-through cost, not a cost of the lending. In effect, they are arguing that the attorney's fee is a separate transaction and not a part of the loan.

While S corporations also provide limited liability for their owners and favorable pass-through tax treatment, LLCs do provide some additional advantages to growing businesses.

S-Corporations are taxed in a pass-through manner rather than as a regular corporation taxed on its own basis. The pass-through taxation allows the shareholders to pay taxes like members in a partnership.

A dollar roll is a popular type of trade in the MBS pass-through TBA market.
According to forward securities pricing theory, the front month price should be higher than the back month price.

In addition, a limited liability company may exempt the owners from certain pass-through taxes that may be otherwise applicable. As such, a limited liability company may encompass qualities of both the partnership and a corporation.

The simplest mortgage backed security is a pass-through MBS which simply distributes received interest and repayments of principal to the holders of the security, with a deduction for a servicing fee. This usually goes to the originator.

S Corporation (Subchapter S of the Code): An incorporated business that is a "pass-through" entity for tax considerations.

The government has already put a very tax efficient and cost effective New Zealand Limited Partnership structure in place that can be used for non-New Zealand investors investing outside of New Zealand as a pass-through entity.

Government National Mortgage Association ("Ginnie Mae") A government-owned corporation that purchases mortgages and re-packages them as pass-through securities. The holder of a pass-through bond owns a portion of the underlying mortgages.

The acronym for the Government National Mortgage Association, which buys up mortgages in the secondary market and sells them to investors via securities known as pass-through certificates.
Good-till-canceled order.

A business venture, usually organized as a limited partnership, that is structured to pass-through income and "tax losses" of the underlying investments to investors. However, its use as a tax shelter has been severely reduced by tax legislation.

The term also refers to private label or agency securities, pass-throughs, or derivatives such as Collateralized Mortgage Obligations. It can refer to the Over-the-Counter options on mortgage backed securities as well.

DIRECT PARTICIPATION PROGRAM (DPP) " A business venture structured to pass-through income and "tax losses" to investors. Commonly structured as a limited partnership. See: Tax Shelter, Limited Partnership.

It's the total of wages, interest, dividends, capital gains (or up to $3,000 in losses), profit or loss from real estate or pass-through entities (e.g., S corporation), ...

SUBRECIPIENT - A non-federal entity that expends federal awards received from a pass-through entity to carry out a federal program, but does not include an individual that is a beneficiary of such a program.

Except on certain major corporate issues, ESOPs today are permitted by law to withhold pass-through of the vote on shares held by the ESOP for employee-owners. In practice today, most ESOPs operate as ESAPs.

See also: Banks, Expense, Values, Prepayment, Saving