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 ?
CAS REMIC notes are issued by a bankruptcy-remote trust.
* that has elected REMIC status for the taxable year and all prior taxable years;
The IRC permits a REMIC to own foreclosed property for up to three years, with the possibility of an extension, but as a result of its inability to acquire new mortgages, the REMIC cannot offer purchase money financing.
An interest in a REMIC is a regular interest if it (1) was issued as a designated regular interest on the "startup day" selected by the REMIC, (2) unconditionally entitles the holder to a specified principal amount, and (3) provides for interest payments (if any) that (a) are based on a fixed rate, or, to the extent provided in regulations, at a variable rate, or (b) consist of a specified, unvarying portion of the interest payments on qualified mortgages.
Previously, borrowers with loans securitized through a REMIC were unable to significantly modify their property to meet changing market trends.
A REMIC divides the payouts on a pool of mortgages into tranches, or segments, based on the investors' preferences for a short-term, intermediate term, or long-term investment.
REMICs may issue two types of securities: "regular interests" and "residual interests." The REMIC may issue multiple classes of regular interests (REMIC bonds), but only one class of residual interests.
"We did it ourselves in our first week of business, and the deal was profitable." Since then, Blaylock & Partners has served as a co-manager on a $1.1 billion commercial mortgage-backed transaction for the RTC, and as sole manager of a $90 million Fannie Mae strip REMIC. The firm, which started out with Blaylock and one temporary employee, now has a staff of 25.
REMICs. Freddie Mac has sold certain classes of real estate mortgage investment conduits (REMICs) that entitle the holder to exercise a one-time option to put the securities to Freddie Mac, at par, on a specific date.
Fannie Mae priced its seventh Multifamily DUS REMIC in 2019 totaling $802 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on July 16, 2019.
Contact Outdoor Lab/Prairie Manager Remic Ensweiler at ensweilerr@cod.edu.
BANKING AND CREDIT NEWS-January 17, 2019-Fannie Mae prices green multifamily DUS REMIC at USD 996.5m