real estate mortgage investment conduit

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Real Estate Mortgage Investment Conduit (REMIC)

A pass-through tax entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms. A financing vehicle created under the Tax Reform Act of 1986.

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.

real estate mortgage investment conduit (REMIC)

A type of pass-through mortgage-backed security established in the Tax Reform Act of 1986. REMICs can vary in both maturity and risk and are backed by mortgage or participation loans.

real estate mortgage investment conduit (REMIC)

An entity that holds a fixed pool of mortgages and issues multiple classes of mortgage backed securities.All interests must be classified as regular or residual. Regular interests are entitled to principal and interest income, through bonds, stock, or some other vehicle.Residual interests provide income that is less certain.There are almost 50 different classes of certificates,all with varying rights and risks.The Freddie Mac Web site has an excellent discussion of all available certificate types at

References in periodicals archive ?
2009-45, announcing that it would not challenge the tax status of REMICs or investment trusts that modified mortgage loans under certain conditions.
REMICs are a vehicle by which commercial mortgages are securitized.
Benchmark REMICs are multi-class mortgage-related securities with enhanced structural, price transparency and liquidity features for fixed-income investors.
Although REMICs have been successful in expanding access to capital, the outdated rules have made it more difficult to renovate, lease and manage commercial buildings financed with REMICs, the trade associations stated in their letter.
The growing seniors housing market may become the next property sector to spark the interest of potential investors in real estate securitization via REITs and REMICs, predicts Coopers & Lybrand.
Probably the most important sources right now are the REITs (real estate investment trusts) and the REMICs (real estate mortgage investment conduits).
Thus, sale treatment is disallowed for these REMICs.
Previously, the Fund observed policies that prevented it from investing in IOs or inverse floaters of collateralized mortgage obligations or in residual interests of REMICS.
Reference REMIC R007 will feature Modifiable and Combinable REMICs (MACRs), which provide for exchanges into and out of floater and inverse floater combinations.
This most recent development in Fannie Mae's issuance of REMICs should help us better serve our affordable housing mission by attracting more capital to the U.
For example, two tax ramifications associated with REMICs become irrelevant under a FASIT structure:
Like the rule applicable to REMICs, the blackout period is six months before and six months after the date of sale.