An MBS in which principal and interest payments by homeowners are passed through as principal and interest payments to security holders.
A security in which principal, interest and prepayments are passed through to investors of the security each month as received. Mortgage collateral is held by a grantor trust in which investors own an undivided interest. In accounting terms, a pass-through is treated as a sale of assets.
Related: Mortgage pass-through security
A security issued by a special purpose vehicle that pays investors whatever net cash flows the special purpose vehicle's assets generate.
Securitisation structure where the SPV makes payments, or rather, passes payments to the investors, on the same periods, and subject to the same fluctuations, as they are in the actual receivables. This means that the actual amount collected every month is passed through to investors, after deducting fees. .
Security in which the periodic interest and principal are passed from a mortgagor to an investor through an intermediary.