REMIC


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REMIC

Real Estate Mortgage Investment Conduit

The most common type of mortgage-backed security. A REMIC entitles the owner to a claim on the principal and interest payments on the particular mortgages underpinning the security. REMICs pay an interest rate that is usually related to the interest rates the homeowners are paying on their mortgages. The equivalent of the coupon on a mortgage-backed security is a percentage of the interest and principal paid on the mortgages backing the security. REMICs can take different legal forms: trusts, partnerships, and assets without a legal status. They qualify for special tax treatment. REMICs were established by the Tax Reform Act of 1986.

REMIC

REMIC

See real estate mortgage investment conduit.

References in periodicals archive ?
Additionally, the Treasury department issued final regulations (TD 9463) expanding the list of exceptions that will not be considered "significant modifications" of an obligation held by a REMIC.
Servicers, however, said retesting would not take place in normal circumstances because they constituted significant modifications, which were not permitted under original REMIC rules.
Freddie Mac Reverse REMIC Giant PC securities are designed to provide a new, additional dimension of liquidity to the residential mortgage-backed securities market," said Mark Hanson, vice president for mortgage funding.
Information about Benchmark REMIC Trust 2007-B2, of which the GMC is a part, will be available in the prospectus supplement on the Prospectus and Related Documents page of the company's Web site at http://www.
Short-term commercial financing, such as interim loans and bridge loans, can also be placed-in a FASIT with greater efficiency and at a lower cost than using a REMIC structure because the FASIT has the capability to remove or take in additional assets in cases of over-collateralization.
The Offering Circular Supplement can be obtained by entering "R016" in the REMIC Prospectus Lookup box.
Permitted assets include cash and cash equivalents, most debt instruments (qualified debt instruments), swaps or certain other reasonably required hedging assets, credit enhancement assets (such as insurance and guarantees), REMIC regular (but not residual) interests and regular interests in other FASITs, and certain foreclosure property.
Freddie Mac guarantees the timely payment of principal and interest on its Reference REMIC securities.
0 billion of Benchmark REMIC Trust 2007-B1 as a Guaranteed Maturity Class (GMC) with a final maturity date of December 28, 2020.
At a time when traditional sources of capital remain scare, commercial property owners are now looking to the burgeoning REMIC market to raise the cash they need to pay off loans coming due.
Congress decided in 1986 that any entity formed after 1991 that offered real-estate mortgage debt-backed securities with two or more maturities and that did not elect REMIC status was to be taxed as a corporation and would not be eligible to join in filing a consolidated return.
11 /PRNewswire-FirstCall/ -- Freddie Mac today announced its intention to issue its next Reference REMIC (R) security.