[Verse 1] When homeowners pay their monthly dues Principal and interest, here's the news These payments don't just stay at the bank They flow right through, investors give thanks Simple securities, straight and clean The most basic mortgage product you've seen [Chorus] Pass it through, pass it through From the homeowner straight to you Principal and interest flowing free That's mortgage-backed security Pass it through, pass it through Monthly payments coming due Simple structure, cash will flow That's the basics you need to know [Verse 2] Thousands of mortgages bundled tight Pooled together, spread the risk right When families make their payments each month The money travels, that's the front Investors receive their allocated share Based on the portion that they declare [Chorus] Pass it through, pass it through From the homeowner straight to you Principal and interest flowing free That's mortgage-backed security Pass it through, pass it through Monthly payments coming due Simple structure, cash will flow That's the basics you need to know [Bridge] But here comes prepayment, changing the game When homeowners refinance or move away Early payments mess with timing's frame Investors get cash sooner than they'd say Risk and reward, that's the trade In this pass-through parade [Verse 3] Government agencies back the pool Ginnie Mae and Freddie make the rules Credit risk is low but timing's unclear Prepayment risk is what you should fear When rates drop down, they pay too fast When rates rise up, the loans will last [Chorus] Pass it through, pass it through From the homeowner straight to you Principal and interest flowing free That's mortgage-backed security Pass it through, pass it through Monthly payments coming due Simple structure, cash will flow That's the basics you need to know [Outro] Mortgage pass-through, foundation stone For structured finance, now you've grown From simple concept, complex markets grew But it all starts with payments passing through
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