Is a REMIC a type of REIT? - mortgage real estate investment trust
A Real Estate Investment Conduit is the structure of several mortgage-backed securities, but is also a (REIT Real Estate Investment Trust), if configured as a trust?
Friday, January 15, 2010
Mortgage Real Estate Investment Trust Is A REMIC A Type Of REIT?
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Not particularly, but may be in practice.
ReplyDeleteTo be a REMIC, a pool of mortgages and related assets must meet several tests on the composition of their assets and the nature of the mortgage interest they emit.
The first is an asset test to ensure that a REMIC is not only a group of self-assessment mortgages. The second test requires that all interests in a REMIC fall into two categories, distinctions, regular or residual - the federal tax.
Some work in tandem with REMICs REIT in order to certain benefits not otherwise available to take advantage of the REIT offering.
The REIT REMIC is a possibility, has the advantage of the REIT's assets by issuing debt to raise capital for the REIT properties increase, borrowing costs in a property can reduce any property.