   
|
|
|
|
Real Estate Mortgage Investment Conduit
|
A real estate mortgage investment conduit is a method of investing in a pool of mortgages, similar in concept to a mutual fund. A real estate mortgage investment conduit – or REMIC – creates groups of mortgages with similar risk factors and maturity dates. In this way a real estate mortgage investment conduit simplifies an investor’s risk management. A real estate mortgage investment conduit can be assembled by a partnership, an association, a trust, or a corporation. Once a real estate mortgage investment conduit has been assembled, securities based on the collected mortgages are sold in the secondary mortgage market. While a real estate mortgage investment conduit itself is federally tax exempt, the income earned by investors is fully taxable. A real estate mortgage investment conduit may invest in single family or multifamily mortgages, second mortgages, commercial mortgages and similar pass-through securities. The largest players in the real estate mortgage investment conduit business are Freddie Mac and Fannie Mae.
Rate this real estate mortgage investment conduit definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
