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 ?
Nelson represents issuers, underwriters, government-sponsored enterprises, and credit-enhancers on the tax aspects of structured finance transactions, including structuring and documenting residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) in real estate mortgage investment conduits (REMIC); debt-for-tax and grantor trust structures; asset-backed securities (ABS); and collateralized loan obligations (CLO) for real estate investment trust (REIT) and non-REIT issuers.
Individuals who wish to invest in real estate without using real property as their investment medium have indirect investment alternatives in the form of real estate investment trusts (REIT) and real estate mortgage investment conduits (REMIC), and properly informed CPAs can educate potential investors on the nuances of these entities.
residential mortgage-backed securities (RMBS) and resecuritized real estate mortgage investment conduits (Re-REMICs), by conducting a three-step quantitative analysis and subjecting each rating to review by a surveillance committee, it did not do so.
They provide special rules for certain partnership payments; govern the treatment of certain capital loss carryforwards; and deal with the treatment of income and deductions from common trust funds, related to residual interests in real estate mortgage investment conduits (REMICs), and from certain notional principal contracts.
The Internal Revenue Service (IRS) and the Treasury Department issued final rules in September that permit modifications on certain commercial mortgages held by real estate mortgage investment conduits (REMICs).
Creating a "default event," an event that can prompt a default, is imperative for securitized loans under the rules governing real estate mortgage investment conduits, known as REMICs, which are used to create CMBS loans.
The automatic procedure applies to individuals, partnerships, real estate mortgage investment conduits, and certain trusts.
The form previously used for a corporate extension (Form 7004, Application for Automatic Extension of Time to File Corporation Income Tax Return) will now also be used by partnerships, real estate mortgage investment conduits, certain trusts and taxpayers requesting additional time to file various excise, income, information and other returns.
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.
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.
Probably the most important sources right now are the REITs (real estate investment trusts) and the REMICs (real estate mortgage investment conduits).
For example, last September, the Federal National Mortgage Association (Fannie Mae) unveiled "Access." This program added six black firms to its 48-member debenture selling group and created a 10-point plan for the firms to underwrite discount notes, long-term debentures and notes, mortgage-backed securities and real estate mortgage investment conduits (REMICs).

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