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 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.
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).
HB 272, Laws 2005, imposes corporate tax on limited liability entities (including limited liability companies, limited liability partnerships, real estate investment trusts, regulated investment companies, real estate mortgage investment conduits and financial asset securitization investment trusts) by including such entities in the definition of "corporation"
The members lobbied Congress on the issues of banks in real estate, bankruptcy reform, depreciation, tort reform, terrorism insurance and real estate mortgage investment conduits.
Credit unions also had $17.8 billion in derivatives, including collateralized mortgage obligations, real estate mortgage investment conduits, stripped mortgage securities and residual obligation instruments.
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.
1.6081-3T does not change the rules for filing extensions for corporate income tax returns; rather, it expands the scope of formerly titled Form 7004, Application for Automatic Extension of Time to File Corporation Income Tax Return, from just corporate taxpayers, to partnerships, real estate mortgage investment conduits, certain trusts that previously filed Form 8736 (now made obsolete) and taxpayers that previously requested additional time to file certain excise, income, information and other returns by submitting Form 2758 (now made obsolete).
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.
These structures, originally issued in the form of collateral mortgage obligations CMOS) and now issued as real estate mortgage investment conduits (REMICs), aggregate and then redirect the principal and interest cash flows coming from the underlying assets and assign payment priorities to different classes of investors.

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