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

References in periodicals archive ?
The year began with an exceptionally rosy outlook for health-care lending, but this changed dramatically in mid-August, as health-care REIT stock prices plummeted with the stock market correction and real estate mortgage investment conduits (REMICs), pension funds, insurance companies and other capital sources were negatively impacted by a widening spread between AAA bonds and two-year Treasuries.
8 billion in derivatives, including collateralized mortgage obligations, real estate mortgage investment conduits, stripped mortgage securities and residual obligation instruments.
Because the scope of these rules goes beyond entities that would otherwise be characterized as real estate mortgage investment conduits (REMICs) it is important to review them in any pooling of debt instruments.
For federal income tax purposes, elections will be made to treat the trust as one or more real estate mortgage investment conduits (REMICs).
Real Estate Mortgage Investment Conduits (REMICs), which pool mortgages into a single investment vehicle, are particularly well suited as financing sources for senior housing, says Smolarz.
For federal income tax purposes, the Trust will consist of multiple real estate mortgage investment conduits (REMICs).
Now a different form of securitization has come along to address this situation, known as the Real Estate Mortgage Investment Conduits (REMICs).
For federal income tax purposes, the Trust Fund will consist of multiple real estate mortgage investment conduits (REMICs).
For federal income tax purposes, elections will be made to treat the trust as multiple real estate mortgage investment conduits (REMICs).
For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits (REMICs).
For federal income tax purposes, an election will be made to treat the trust as three real estate mortgage investment conduits (REMICs).
For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits (REMICs).

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