# Pass-Through Security

> Pass-Through Security turns pools of individual promises into tradable capital-market claims

| Field | Value |
|---|---|
| Stable ID | `node:kiduna:real-estate-mortgage:securitization:pass-through-security` |
| Family | Securitization & MBS |
| Domain | Economics |
| Era | Agentic Age |
| Kind | financial-instrument |
| Archetype | The Reservoir |
| Claim layers | empirical, cultural_historical, synthesis, interpretive, symbolic_divinatory |

## What it is

Pass-Through Security is a financial instrument in the Securitization & MBS family, defined here by the function it performs in the property system rather than by label alone.

## What it actually does

Pass-Through Security turns pools of individual promises into tradable capital-market claims.

## Why it exists

It exists because place is unique and immovable while law, capital, information, and human lives must still coordinate around it across time.

## System mechanics

- **Who uses it:** owner, occupant, buyer, seller, lender, investor, steward, regulator
- **Incentives:** access to capital, yield, liquidity, risk allocation
- **Inputs:** capital, terms, collateral or cash flow, counterparties, risk assumptions
- **Outputs:** funding, cash-flow claims, obligations, risk allocation
- **Dependencies:** Pool, Loan Delivery, Servicing, Investor, Disclosure

## Archetypal reading

- **Essence:** Pass-Through Security turns pools of individual promises into tradable capital-market claims
- **Gift:** Clarity about pass-through security makes a hidden allocation of place, time, authority, value, or risk available for deliberate choice.
- **Wound / Shadow:** When pass-through security is treated as neutral or inevitable, its costs can be shifted to people who hold less information, authority, liquidity, or mobility.
- **Failure mode:** The failure mode appears when pass-through security is stale, opaque, mispriced, misrecorded, overextended, or applied outside the conditions that made it useful.

## Lenses

- **Personal:** Notice where pass-through security appears as a structure in your own commitments: what is held, promised, priced, protected, excluded, or deferred?
- **Business:** Pass-Through Security reveals a handoff among information, authority, incentives, operating work, and capital. Make the owner of each handoff explicit.
- **Financial:** Pass-Through Security changes the timing, priority, comparability, liquidity, or distribution of cash flow and risk.
- **Property:** Pass-Through Security changes how a physical place can be used, valued, financed, transferred, occupied, maintained, or reclaimed.
- **Community:** Pass-Through Security can create benefits inside one parcel while exporting costs or opportunity to neighbors, institutions, or future residents.

## Divination

The Reservoir enters the reading through Pass-Through Security. The issue is not only what is visible; it is which map of ownership, time, risk, authority, or belonging currently governs the situation.

**Question:** What future is being pledged through Pass-Through Security, and who receives protection if conditions change?

**Guidance:** Separate access from cost, payment from principal, and temporary liquidity from permanent viability.

## Game function

Moves Capital now and creates a future Claim with explicit priority and failure consequences. Initiative 2.

## Relationships

- **Department of Veterans Affairs is administered through Pass-Through Security.** Department of Veterans Affairs is administered through Pass-Through Security through a change in rights, information, cash flow, priority, timing, or physical use.
- **Pool constrains Pass-Through Security.** Pool constrains Pass-Through Security through a change in rights, information, cash flow, priority, timing, or physical use.
- **Pass-Through Security enables Special-Purpose Vehicle.** Pass-Through Security enables Special-Purpose Vehicle through a change in rights, information, cash flow, priority, timing, or physical use.
- **Pass-Through Security depends on Weighted Average Coupon.** Pass-Through Security depends on Weighted Average Coupon through a change in rights, information, cash flow, priority, timing, or physical use.

## Oppositions

- Use Value versus Exchange Value
- Speed versus Diligence

## Historical lineage and regulatory context

Read Pass-Through Security through the lineage of Securitization & MBS: earlier customary or local arrangements became recorded, standardized, financed, regulated, digitized, or contested over time.

Rules vary by jurisdiction and transaction. Use the cited primary sources as starting points and verify current local law, program guides, contracts, and professional standards before operational use.

## Visual direction

Text-free rounded-square enamel artifact for Pass-Through Security: a luminous claim-line descending from a built form into layered earth and extending across a long brass timeline; vitreous midnight enamel, blackened steel, warm brass, copper accents, mortgage-paper cream, deep green, slate, and sky blue.

## Engine output / Sentinel handoff

The generative interpretation above is preserved as Engine Output. Sentinel factors: jurisdiction-specific rules, factual uncertainty, financial risk. These factors request contextual review; they do not delete or silently rewrite the candidate.

## Research / provenance

- [Dodd-Frank Act Rulemaking: Asset-Backed Securities](https://www.sec.gov/spotlight/dodd-frank/assetbackedsecurities.shtml) — U.S. Securities and Exchange Commission; ABS and RMBS securitization, tranching, disclosure.
- [Ginnie Mae MBS Guide](https://www.ginniemae.gov/issuers/program_guidelines/Pages/mbs_guide.aspx) — Ginnie Mae; pooling, issuance, custody, servicing, investor reporting.
- [TBA Trading and Liquidity in the Agency MBS Market](https://www.newyorkfed.org/research/epr/2013/1212vick.html) — Federal Reserve Bank of New York; TBA mechanics and liquidity.
