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 ?
Each directory contains information submitted to the IRS by the REMIC for that particular quarter and identifies representatives from whom REMIC-specific information can be obtained.
A REMIC may issue a regular interest that bears interest that can be expressed as a percentage of the interest payable on a specified portion of a regular interest acquired from another REMI C (sometimes called a specified portion regular interest or an "Interest Only" interest or "IO").
To be principally secured by real property, the property's fair market value (FMV) at the origination of the obligation or at the time it is contributed to a REMIC must be at least 80% of the obligation's adjusted issue price order for the obligation (Regs.
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.
However, if the REMIC market grows as anticipated, residual interests will become available to the general public.
Servicers, however, said retesting would not take place in normal circumstances because they constituted significant modifications, which were not permitted under original REMIC rules.
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.
Return for a Partnership, REMIC, or for Certain Trusts, by the end of the first extension period, to request an extension of up to another three months.
As a further demonstration of the partnership and cooperation that the City of New York has provided in the development of this experiment, REMIC for the first time will issue its mortgage insurance at the permanent loan closing with evidence that the lender has applied for the city-sponsored J-51 Tax Abatement.
The REMIC Modernization Act, if enacted, will allow property owners to make improvements or additions to the mortgaged real estate.
There is only one class of ownership interest and 100% of such class is directly held by a single eligible corporation (that is, by my domestic C corporation other than a regulated investment company, a real estate investment trust, a REMIC or certain cooperatives).
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.