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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
These included leading a Sallie Mae offering of $50 million in floating rate notes; joining the Federal Farm Credit Bank's bond selling group; and acting as co-lead manager in two Fannie Mae REMICS and two swap trusts worth more than $1 billion.
Probably the most important sources right now are the REITs (real estate investment trusts) and the REMICs (real estate mortgage investment conduits).
In particular, the innovations of collateralized mortgage obligations (CMOs) and real estate mortgage investment conduits (REMICs) have resulted in securities that provide different claims and priorities on the principal and interest payments made on underlying loans, thus accommodating the various needs and preferences of investors.
For federal income tax purposes, elections will be made to treat the trust as one or more real estate mortgage investment conduits (REMICs).
Dupiton joins as director, focused on trading agency multifamily CMBS, including Fannie Mae DUS, Freddie Mac K certificates and Ginnie Mae multifamily REMICs.
9463) expanding the list of permitted loan modifications to include certain modifications of commercial mortgages held by real estate mortgage investment conduits (REMICs).
The Service has released final regulations relating to safe harbor transfers of noneconomic REMIC residual interests in REMICs.
As part of NAA/NMHC's efforts to restore liquidity to the commercial real estate market, NAA/NMHC and others are urging the Treasury Department to temporarily change the tax rules governing real estate mortgage investment conduits (REMICs) that would allow CMBS servicers to begin loan restructuring talks with borrowers before the loans go into default.
The investments receiving the lowest ratings (and therefore are least appropriate based on the investor's goals) are commodities (47), individual retirement accounts--fixed (59), Keogh plans--fixed (59), life insurance--variable (60), Real Estate Mortgage Investment Conduits (REMICs)--regular interests (60), and financial futures (60).
Members voiced industry concerns about banks in real estate, small business health plans, terrorism insurance, real estate mortgage investment conduits (REMICs) and tax reform during 215 separate meetings with U.S.
And they encounter frustrations every day as they try to manage assets involved in real estate mortgage investment conduits (REMICs) that are regulated by a 20-year-old law.