Mortgage Participation Certificate
- Mortgage Participation Certificate
- A type of security that groups together Freddie Mac conventional mortgages. These certificates are guaranteed by Freddie Mac and are taxable by federal, state and the local government. These certificates are also referred to as "pass-through" because the interest and principal payments are periodically passed through to investors from debtors after service fee deductions.
These securities tend to have short maturities. Private lenders group these loans together and sell them to investors. Freddie Mac issues, trades, replaces and collects matured mortgage participation certificates. A Multifamily K certificate is an example of these securities. Multifamily K certificates are structured pass-through securities that are guaranteed by Freddie Mac and have a structured credit enhancement, but are backed by multifamily mortgage loans.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Participation Certificate — These US certificates represent an interest in mortgage loans. The buyer receives the cash flows and is the owner, but the seller remains the mortgagee of record. In Switzerland, a participation certificate is a non voting form of equity… … Financial and business terms
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Participation mortgage — A participation mortgage or participating mortgage is a mortgage, or sometimes a group of them, in which two or more persons have fractional equitable interests. In this arrangement the lender, or mortgagee, is entitled to share in the rental or… … Wikipedia
Participation Mortgage — A participation mortgage is a type of mortgage that allows the lender to share in part of the income or resale proceeds. The lender participates in the income of the mortgaged property beyond a fixed return, or receives a yield on the loan in… … Investment dictionary
certificate — /sartifakat/ A written assurance, or official representation, that some act has or has not been done, or some event occurred, or some legal formality has been complied with. A written assurance made or issuing from some court, and designed as a… … Black's law dictionary
certificate — /sartifakat/ A written assurance, or official representation, that some act has or has not been done, or some event occurred, or some legal formality has been complied with. A written assurance made or issuing from some court, and designed as a… … Black's law dictionary
mortgage certificate — Document evidencing participation in a large mortgage held by the mortgagee for the benefit of the certificate holders … Black's law dictionary
mortgage certificate — Document evidencing participation in a large mortgage held by the mortgagee for the benefit of the certificate holders … Black's law dictionary
