A mortgage pass-through security is created when one or more holders of mortgages form a collection (pool) of mortgages and sell shares or PCs in the pool.

Name: A mortgage pass-through security is created when one or more holders of mortgages form a collection (pool) of mortgages and sell shares or PCs in the pool.
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A mortgage pass-through security is indeed created through the process described in the statement, where mortgages are pooled and sold as shares or pass-through certificates (PCs).

A Mortgage Pass-Through Security Is Created When One or More