real estate mortgage investment conduit

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.

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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.

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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 www.freddiemac.com/mbs/docs/remic_glossary.pdf.