A mortgage security (mortgage-backed security) that is created by splitting a pass-through into two classes: a callable class and a call class. The callable class is paid all of the principal and interest from the underlying collateral (mortgage pool). The call class receives no principal or interest, but the holder (of the call class) has the right (and option) to call the underlying pass-through at a stated price (typically, par value plus accrued interest) from the callable class holders after the passage of a specified period of time from the issue date of the two classes.

Holders of callable class has the right to request the security’s trustee to redeem the outstanding principal of the call class at a set price, and to receive the underlying collateral in return. Pass-throughs are securities that represent interests in pools of assets that are held in trust for investors and are backed by underlying mortgages.

The callable pass-through structure was introduced in the 1990s.

It is also known as a callable pass-through or for short as CPC.