Guaranteed mortgage certificate (GMC),
Definition of Guaranteed mortgage certificate (GMC):
Guaranteed Mortgage Certificates are issued by either the Federal Home Loan Mortgage Corporation, popularly known as Freddie Mac, the Federal National Mortgage Association, popularly known as Fannie Mae, or the Government National Mortgage Association, popularly known as Ginnie Mae. Following the 2008 financial crisis and the federal government's takeover of Fannie Mae and Freddie Mac, all three of these housing finance companies are fully owned by the U.S. government. Because of this backing, guaranteed mortgage certificates are seen as very safe investments. .
Mortgage bond that serves as a pass through in which mortgages are purchased by Freddie Mac are resold to a pool of investors. Sold in incremental principal amounts, the interest on these mortgages are paid semiannually while principal repayments are paid annually.
A guaranteed mortgage certificate, also known as a guaranteed mortgage pass-through certificate, is a bond backed by a pool of mortgages. .
Meaning of Guaranteed mortgage certificate (GMC) & Guaranteed mortgage certificate (GMC) Definition