They then are marketable and get sold to investors. They are called pass-through securities because the holder of a the certificate receives interest and principle on the mortgages on a monthly basis. FNMA, FHLBank, private investment organizations also. GNMA does this securitization. When someone moves, or refinances you get paid off early.
Most people move before their mortgage is paid off or refinance.
GNMA as interest rates decrease, prices increase. The Option System can teach you exactly how to do this. Get your FREE subscription to Profit from the Pros investment newsletter. You'll make more money because stock picks and advice comes from professionals with proven track records of beating the street. Register for free with The Motley Fool and begin your journey to financial independence.